Marketing Strategy Opted by the Apollo Tyres1

117
PROJECT REPORT ON MARKETING STRATEGY OPTED BY THE APOLLO TYRES UNDER THE GUIDANCE OF: SUBMITTED BY: Mr. Sumit chakki shivalya mehta M.M UNIVERSITY AMBALA ODL/07/403/2859 MBA SESSION: 2011-2012 TO WHOM SO EVER IT MAY CONCERN This is to certify that the project work title “Marketing strategy opted by the Apollo Tyres ” by SHIVALYA MEHTA,

Transcript of Marketing Strategy Opted by the Apollo Tyres1

Page 1: Marketing Strategy Opted by the Apollo Tyres1

PROJECT REPORT

ON

MARKETING STRATEGY OPTED BY THE APOLLO TYRES

UNDER THE GUIDANCE OF SUBMITTED BY Mr Sumit chakki shivalya mehtaMM UNIVERSITY AMBALA ODL074032859

MBA

SESSION 2011-2012

TO WHOM SO EVER IT MAY CONCERN

This is to certify that the project work title ldquoMarketing strategy opted by the Apollo

Tyres rdquo by SHIVALYA MEHTA ODL074032859 is an authentic work carried out

by him under my guidance and supervision in the Bachelor of Business

Administration From MM UNIVERSITYAMBALA The report submitted has been

founded satisfactory for the partial fulfillment of the degree of MBA

-------------------------

DR SK SENAPATI

(PROJECT SUPERVISOR)

1

STUDENT DECLARATION

I here by certify that the project report entitled on ldquoMarketing strategy opted by the

Apollo Tyres rdquo Submitted in partial fulfillment of the requirement for the award

degree of Master in business from MM UNIVERSITY AMBALA is my original

work and not submitted or the award of any other degree diploma fellowship or any

other similar title or prizes anywhere else

SHIVALYA MEHTA ENROLLMENT NO

ODL074032859

2

ACKNOWLEDGEMENT

I would like to take an opportunity to thank all the people who helped me in collecting

necessary information and making of the report I am grateful to all of them for their

time energy and wisdom

Getting a project ready requires the work and effort of many people I would like all

those who have contributed in completing this project First of all I would like to

send my sincere thanks to DR SK SENAPATI for his helpful hand in the

completion of my project

Shivalya MehtaMBA

3

TOPIC CONTENT

INTRODUCTION 1

COMPANY PROFILE25

LITERATURE REVIEW41

RESEARCH METHODOLOGY57

FINDING AND ANALYSIS59

CONCLUSION71

RECOMMENDATION73

BIBLIOGRAPHY75

ANNEXURE ndash QUESTIONNAIRE76

4

INTRODUCTION

INDUSTRY ANALYSIS

Over a period of more than two decades the Indian Automobile Industry has

been driving its own growth through phases The entry of Suzuki Corporation

in Indian passenger car manufacturing is often pointed as the first sign of

India turning to a market economy Since then the automobile sector

witnessed rapid growth year after year By late-90s the industry reached self

reliance in engine and component manufacturing from the status of large

scale importer

With comparatively higher rate of economic growth rate index against that of

great global powers India has become a hub of domestic and exports

business

The automobile sector has been contributing its share to the shining economic

performance of India in the recent years With the Indian middle class earning

higher per capita income more people are ready to own private vehicles

including cars and two-wheelers Product movements and manned services

have boosted in the sales of medium and sized commercial vehicles for

passenger and goods transport

The data obtained from Ministry of Commerce and Industry shows high

growth obtained since 2001-02 in automobile production continuing in the first

three quarters of the 2004-05 Annual growth was 160 per cent in April-

December 2004 the growth rate in 2003-04 was 151 per cent The

automobile industry grew at a compound annual growth rate (CAGR) of 22

per cent between 1992 and 1997

With investment exceeding Rs 50000 crore the turnover of the automobile

industry exceeded Rs 59518 crore in 2002-03 Including turnover of the

auto-component sector the automotive industrys turnover which was above

Rs 84000 crore in 2002-03 is estimated to have exceeded Rs100000

crore ( USD 22 74 billion) in 2003-04

Automobile Dealers Network in India

5

In terms of Car dealer networks and authorized service stations Maruti leads

the pack with Dealer networks and workshops across the country The other

leading automobile manufacturers are also trying to cope up and are opening

their service stations and dealer workshops in all the metros and major cities

of the country Dealers offer varying kind of discount of finances who in tern

pass it on to the customers in the form of reduced interest rates

Major Manufacturers in Automobile Industry

Maruti Udyog Ltd

General Motors India

Ford India Ltd

Eicher Motors

Bajaj Auto

Daewoo Motors India

Hero Motors

Hindustan Motors

Hyundai Motor India Ltd

Royal Enfield Motors

Telco

TVS Motors

DC Designs

Swaraj Mazda Ltd

6

Major Players in Tyre Industry

MRF

A leading company in the tyre industry MRF Ltd boasts of an enviable track

record The company has continued in the same vein and has been posting

excellent results notwithstanding the winds of recession blowing across the

economy Performance of the company has been commendable in light of the

fact that the user industry is facing a slowdown The company has benefited

from better productivity and operational efficiency The company caters to a

host of impressive clients It has signed on to be the sole supplier for auto

giants like General Motors Fiat and Ford in India The company is also

renowned for its exports which have also been witnessing positive growth

The company has recently entered the radial tyre segment and has met with

positive response The performance of the company could further improve

with the revival of the auto industry Thus MRF Ltd can be expected to retain

its position in this segment However investors can move out of the scrip

considering the outlook for the industry as a whole

CEAT

Being the second largest selling brand in India with a market share of 146 per

cent Ceat caters primarily to the replacement market Due to the strong

growth in the OEM sector the share of the replacement market in the total

revenue of the company has fallen However the production growth in the

automobile sector over the past few years should provide a boost to the

replacement market in the coming years and Ceat could be a major

beneficiary thereof With the advent of multinationals like Goodyear Michelin

Bridgestone and Continental a major shakeout in the industry is imminent

and the same could result in Ceat which is already operating on thin margins

being hived off as a joint venture with Goodyear in collaboration with which

Ceat has already promoted South Asia Tyres for manufacturing radial tyres in

India With a modest track record on the financial front the forthcoming

results may not be encouraging

7

Apollo Tyres Limited

A slow-down in the tyre market and rubber procurement at high prices has put

the brakes on Apollo Tyres Limited (ATL) The company has traditionally been

the market leader in the truck and bus tyres segments ATL caters to the

replacement segment of the domestic market Following its take over of

Premier Tyres ATLs market share has risen Besides the core truck and bus

tyre business fairly considerable part of its turnover comes from automotive

tubes and flaps for which it has commissioned a plant in Pune Despite a

reversal in the fortune of the automobile industry the chief user base of the

companyrsquos products the demand for truck tyres particularly in the

replacement market was not encouraging Even as tyre producers grapple

with over-capacity and high levels of inventory the government stirred a

hornetrsquos nest by proposing free imports of used and second-hand tyres ATL

has conversion agreements for small tyres with TCIL Stallino Tyres and

Rado Its exports are routed through Apollo International to the US Germany

Brazil Sudan Egypt etc A well-entrenched posend this article to a

friendsition in the replacement market favours ATL and the declining price

trend of key inputs like natural rubber and carbon black may provide relief to

its wafer-thin margins At the current price level the scrip has emerged as

an attractive buy thus accumulate its shares in small lots

Tyres for 2007-08 2008-09 Change

Truck amp Bus 13137 12839 (-)2

Passenger Car 16437 16570 1

Jeep 1467 1469 02

Light Commercial Vehicle 5320 5298 (-)04

Tractor Front 1814 1842 2

Tractor Rear 1234 1315 7

8

Tractor Trailer 886 758 (-)14

Animal Drawn Vehicle 409 281 (-)31

Scooter Moped 11604 10883 (-)6

Motor Cycle 27921 30148 8

Industrial 733 568 (-)23

Off the Road (OTR) 141 136 (-)4

Total 81103 82107 1

Apollo Tyres Ltd is considering building a greenfield tyre plant in south India It

is looking at Tamil Nadu and Andhra Pradesh as options According to Onkar

S Kanwar Apollos vice chairman and managing director The project outlay

will be around Rs 300 crore and the plant capacity will be 100 tonnes per

day The project will be funded out of internal accruals and term loans

Kanwar rules out any equity infusion It may be recalled that Apollo Tyres

recently issued partly convertible debentures to the promoters

According to Mr Kanwar the proposed facility will roll out truck and bus (radial

and bial) and earthmoving equipment tyres Further if negotiations with

Hyundai Motors (India) Ltd for original equipment supplies succeed the plant

will also roll out car radials The new investment is part of the Rs 400 crore

investment announced by the company recently The company commissioned

its Rs 80 crore 1 lakh tyres per annum capacity car radial tyres plant at

Baroda this January

For Apollo Tyres a plant in Chennai makes economic sense The company

would be able to cut freight costs while supplying to Ashok Leyland (truck

tyres) Tafe (tractor rear tyres) and Hindustan Motors Ltd for its earthmoving

equipment -- all of whom are located in and around Chennai -- and also for

catering to the southern replacement market Currently Apollo Tyres has two

9

facilities in Kerala from where the southern demand is met The south

accounts for 15-18 per cent of the countrys total truck tyre market according

to Mr Kanwar

The peaceful labour environment in Tamil Nadu would help Apollo Tyres The

company has had serious labour problems at its plants The company can

control costs better with its own new facility -- it is currently outsourcing a

sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars

Stallion And since Chennai is a port city exports too will become

competitive

Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo

Tyres We are studying the economics - incentives sales tax exemptions

etc - of locating the unit in Chennai and Andhra Pradesh The new facility

wherever it may come up will boost Apollo Tyres capacity from the current

levels of 244 million tyres annually

In the meanwhile Apollo Tyres talks with Continental AG remain

inconclusive When asked about these negotiations which could result in the

German company taking a 15 per cent stake in the Indian tyre makers equity

Onkar S Kanwar says The final decision will be taken in three months

The Rs 8500 crore Indian tyre industry has attracted substantial foreign

interest Global majors such as Bridgestone and Michelin have already

invested in Indian production facilities Korean tyres are being imported An

equity partnership with Continental will enable Apollo Tyres to access

advanced technology All the global tyre giants spend huge sums in RampD

efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This

effort is focussed on the study of use of different types of rubber chords and

chemicals in tyre manufacture according to Neeraj KanwarThe problem

Continental is also talking to two other Indian companies - JK Tyres and Modi

Rubber -with both of whom it has technical collaboration

A marginal player in the tyre industry a decade ago Apollo Tyres leads the

replacement market in the heavy vehicle and car radials segments It has

achieved this through acquisitions and contract manufacturing One of the

10

reasons for Apollo Tyres going in for a greenfield project is its confidence to

expand its market share The focus is to increase our market share to 25 per

cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says

Bus and truck tyres account for a lions share of the industrys revenues

Since the OE market is margin-sensitive all the action is focussed on the

lucrative replacement market especially in the heavy vehicles segment

According to Satish Sharma product manager at Apollo Tyres The size of

the truck tyre replacement market is 4 lakh tyres per month and our share in

that is 25 per cent

Though the volume will be small talks have been initiated with Volvo India

Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run

for its money Its Apollo Excel tyres rolled out from its Baroda plant have

received an excellent response in the marketplace according to the company

In the OE segment MRF has been losing its hold to Bridgestone And in the

replacement market Apollo Tyres has become a major threat Apollo Tyres is

now negotiating with Hyundai Motors and Hindustan Motors for OE sales The

Kanwars want to reach top spot in the light commercial vehicles segment by

March 2001 In the two wheeler market Apollo is focussing on the motorcycle

tyres market

To boost sales Apollo Tyres has tied up with Castrol India and Kotak

Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve

their earnings The tie-up with Kotak Mahindra will facilitate sales by providing

finance for tyre purchases for the first time in India Apollo Tyres has

increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to

push sales

With all car makers planning to expand capacities the car radial market is

expected to expand rapidly According to the Apollo management the

company sells 11 lakh of the 5 lakh car radials sold per month in India today

At present the companys tyres are fitted as OE in Hindustan Motors

Ambassador and Contessa models in tractors from Tafe Punjab Tractors

and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco

11

Industry was on a smooth ride till FY08 The industry tonnage production

registered a 5-year Compounded Annual Growth Rate (CAGR) of 802

between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded

a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle

and car tyre categories grew at 1334 1227 and 1398 respectively in

this period

However as the economy in general and automobile industry in specific

slowed down in FY09 the tyre demand too came under pressure In the first

nine months of FY09 the industry managed a tonnage growth of only 219

against a growth of 738 in the same period last year The tyre offtake to the

Original Equipment Manufacturers (OEMs) declined by 617 during this

period The TampB tyre category was the worst affected with the total offtake of

these tyres declining by 001 in the first nine months Also in the face of

global slowdown and stiff Chinese competition the export market offtake

declined by 982 during this period

On the face of these demand-side pressures the tyre industry saw production

adjustments from all the major players in the last couple of months The

government too tried to provide external stimulus by effecting 6 excise duty

cut across industries (the excise duty for tyres was brought down from 14 to

10 wef December 7 2008 and then further reduced to 8 wef February

25 2009) In all the gloom one silver lining for the industry has been the

easing of the raw material prices from September 2008 onwards However

the impact of the fall in commodity prices was not visible in the nine months

results of the companies as the companies were laden with high-price

inventories The benefits of the sublime raw material prices will become

visible only in the last quarter of FY09 provided the demand too supports the

topline

The tyre industry faces competition from China in the domestic market

Imports as a percentage of total TampB tyre production stood at 10 in FY08

with more than 90 of these imports coming from China While the anti-

dumping duty is levied on the import of Chinese TampB bias tyres the industry

now wants it to be extended to Chinese TampB radial tyres to alleviate the

12

import threat In addition the industry is also keen on customs duty relief on

raw materials not producedmanufactured in the country so as to compete

with the Chinese tyres

Radialisation though in its infancy in TampB tyre category is making inroads

Most manufacturers have capex plans for radial TampB tyres with no new

capacity being added for bias tyres This indicates that the industry foresees

radialisation to take further hold in the TampB tyre category In the passenger

car segment radialisation has reached 97 up from 95 a year ago The

Industry is also banking on the customised Off The Road (OTR) tyres and

adding capacity in this category

The Indian manufacturers are looking at increasing their global footprints

Apollo is undertaking an expansion plan at its Dunlop plant in South Africa

Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It

has also entered into a manufacturing agreement with Chinese manufacturers

to sell JK-branded tyres in the export markets

13

COMPANY PROFILE

In todayrsquos world of intense competition and rapid dynamism all the companies

worldwide are tuning their focuses on the customer Suddenly the customer

had succeeded in capturing all the attention of the companies towards him so

much so that the once famous maxim ldquocustomer is the godrdquo has become so

true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of

these companies and none other then the customer has brought this about

Earlier there was a sellers market since goods and services were in short

supply and the sellers use to call the shots But ever since the advent of the

era of globalization there has been total transformation in the way the

customers being perceived Today marketers are directing their efforts in

retaining the customers and customersrsquo base Their focus has shifted towards

integrating the three elements people service and marketing

The customerrsquos importance has assumed imponderable proportions in todayrsquos

world because of the inherent value that the customers command A

customers can ldquomake or breakrdquo a company It is the responsibility of every

company to see that all its customers are equally satisfied with them for one

single dissatisfied customer will tell at least nine others about the

dissatisfaction and will spark off a chain reaction and spell doom for that

company In such scenario retention of the existing customers assumes

diabolical proportion Research has thrown light on some important aspects of

customersrsquo retention it has been proved empirically that acquiring new

customers can cost five times more than the cost involved in satisfying and

retaining current customers

In the past the customers was taken for a ride as there were not many

players in the fields not much importance was attached to product safety

quality service and product appeal The attitude of the manufacture was that

of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization

globalization and privatization (LPG) the market scenario has changed today

Today the customer has a host of defense mechanism like the customers

protection laws regulation of the government the powerful hands of the

14

organization customersrsquo courts switching to substitute or competitors that

offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been

replaced by ldquocaveat venditorrdquo

In the past after sales service was consider as a cost center Companies

were lethargic in attending to customers complaints Availability of trainee

service personal and quality genuine spare parts posed serious problems

However with the rising competition there could not be much product

differentiation as price and quality were comparable and latest technology

was to each and every company in the field Since there could not be much

differential a tangible assets the companies concentrated on the ldquointangible

assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator

Today after sales service is an important aspect of every company and it is

no more considered as a cost center but considered as a profit center Every

organization strives hard to retain its existing customers at any cost since it is

five times costly to get a new customers then to retain an existing customers

Today most of the industries use information technology to best services to

their customers

MARKETING STRATEGY

15

Strategic thinking is key to the evolution of successful marketing strategies

of APOLLO tyre This involves the following analyses

(a) Understanding markets Strategic perspective of the market requires skilful

analysis of the trend and how they affect the market size and demand for the firmrsquos

product

(b) Finding market niches Price service convenience and technology

are some of the niches in Indian market

(c) Product and service planning Analysis of the customerrsquos

promotion of the brand both of the firm and competitors besides an analysis

of the situation in which the customer uses the product

(i) Distribution Structural changes in inventory management mobile

distribution are some of the key factors that are going to affect the distribution

process in the Indian market

(ii) Managing for result With pressure on costs prices and margins

marketers will have to make effective utilization of every rupee spent in

marketing

Market opportunity of Apollo tyres-

Identification of market opportunity is critical before the management of

affirm takes a decision to launch or diversify in any product area This involves

analysis of the following

Size of the market

Marketing strategies and the extent and quality of services rendered by

other firm in the industry

Market programmed required to satisfy market wants

Identification of key success factors in an industry and linking them to a

16

firmrsquos strengths and weakness

Market opportunity

(a) Size of the market

(b) How well the market is served

(c) Prospective inches

(d) Marketing mix required to succeed

(e) Core competencies required

MARKETING MIX

A Marketing mix is the division of groups to make a particular product

by pricing product branding place and quality Although some

marketers[who] have added other Ps such as personnel and packaging the

fundamentals of marketing typically identifies the four Ps of the marketing mix

as referring to-

1 Product

2 Price

3 Promotion

4 Place

17

Product

A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units Intangible

products are often service based like the tourism industry amp the hotel industry

Typical examples of a mass produced tangible object are the tyre A less

obvious but ubiquitous mass produced service is a computer operating

system

18

Price

The price is the amount a customer pays for the product It is determined by a

number of factors including market share competition material costs product

identity and the customers perceived value of the product The business may

increase or decrease the price of product if other stores have the same

product

Place

Place represents the location where a product can be purchased It is often

referred to as the distribution channel It can include any physical store as well

as virtual stores on the Internet

Promotion

Promotion represents all of the communications that a marketer may

use in the marketplace Promotion has four distinct elements - advertising

public relations word of mouth and point of sale A certain amount of

crossover occurs when promotion uses the four principal elements together

which is common in film promotion Advertising covers any communication

that is paid for from television and cinema commercials radio and Internet

adverts through print media and billboards One of the most notable means of

19

promotion today is the Promotional Product as in useful items distributed to

targeted audiences with no obligation attached This category has grown each

year for the past decade while most other forms have suffered It is the only

form of advertising that targets all five senses and has the recipient thanking

the giver Public relations are where the communication is not directly paid for

and includes press releases sponsorship deals exhibitions conferences

seminars or trade fairs and events Word of mouth is any apparently informal

communication about the product by ordinary individuals satisfied customers

or people specifically engaged to create word of mouth momentum Sales

staff often plays an important role in word of mouth and Public Relations

Broadly defined optimizing the marketing mix is the primary responsibility of

marketing By offering the product with the right combination of the four Ps

marketers can improve their results and marketing effectiveness Making

small changes in the marketing mix is typically considered to be a tactical

change Making large changes in any of the four Ps can be considered

strategic For example a large change in the price say from $1900 to $3900

would be considered a strategic change in the position of the product

However a change of $131 to $13099 would be considered a tactical change

potentially related to a promotional offer

The term Marketing Mix however does not imply that the 4P elements

represent options They are not trade-offs but are fundamental marketing

issues that always need to be addressed They are the fundamental actions

that marketing requires whether determined explicitly or by default

Product Profile

The Apollo Tyres ltd Is leading company for all tyres-manufacturing company

in India and The Apollo Tyres Company manufacturing the tyres for the entire

segment (TRUCK LCV PCR FARMS OTR)

20

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 2: Marketing Strategy Opted by the Apollo Tyres1

-------------------------

DR SK SENAPATI

(PROJECT SUPERVISOR)

1

STUDENT DECLARATION

I here by certify that the project report entitled on ldquoMarketing strategy opted by the

Apollo Tyres rdquo Submitted in partial fulfillment of the requirement for the award

degree of Master in business from MM UNIVERSITY AMBALA is my original

work and not submitted or the award of any other degree diploma fellowship or any

other similar title or prizes anywhere else

SHIVALYA MEHTA ENROLLMENT NO

ODL074032859

2

ACKNOWLEDGEMENT

I would like to take an opportunity to thank all the people who helped me in collecting

necessary information and making of the report I am grateful to all of them for their

time energy and wisdom

Getting a project ready requires the work and effort of many people I would like all

those who have contributed in completing this project First of all I would like to

send my sincere thanks to DR SK SENAPATI for his helpful hand in the

completion of my project

Shivalya MehtaMBA

3

TOPIC CONTENT

INTRODUCTION 1

COMPANY PROFILE25

LITERATURE REVIEW41

RESEARCH METHODOLOGY57

FINDING AND ANALYSIS59

CONCLUSION71

RECOMMENDATION73

BIBLIOGRAPHY75

ANNEXURE ndash QUESTIONNAIRE76

4

INTRODUCTION

INDUSTRY ANALYSIS

Over a period of more than two decades the Indian Automobile Industry has

been driving its own growth through phases The entry of Suzuki Corporation

in Indian passenger car manufacturing is often pointed as the first sign of

India turning to a market economy Since then the automobile sector

witnessed rapid growth year after year By late-90s the industry reached self

reliance in engine and component manufacturing from the status of large

scale importer

With comparatively higher rate of economic growth rate index against that of

great global powers India has become a hub of domestic and exports

business

The automobile sector has been contributing its share to the shining economic

performance of India in the recent years With the Indian middle class earning

higher per capita income more people are ready to own private vehicles

including cars and two-wheelers Product movements and manned services

have boosted in the sales of medium and sized commercial vehicles for

passenger and goods transport

The data obtained from Ministry of Commerce and Industry shows high

growth obtained since 2001-02 in automobile production continuing in the first

three quarters of the 2004-05 Annual growth was 160 per cent in April-

December 2004 the growth rate in 2003-04 was 151 per cent The

automobile industry grew at a compound annual growth rate (CAGR) of 22

per cent between 1992 and 1997

With investment exceeding Rs 50000 crore the turnover of the automobile

industry exceeded Rs 59518 crore in 2002-03 Including turnover of the

auto-component sector the automotive industrys turnover which was above

Rs 84000 crore in 2002-03 is estimated to have exceeded Rs100000

crore ( USD 22 74 billion) in 2003-04

Automobile Dealers Network in India

5

In terms of Car dealer networks and authorized service stations Maruti leads

the pack with Dealer networks and workshops across the country The other

leading automobile manufacturers are also trying to cope up and are opening

their service stations and dealer workshops in all the metros and major cities

of the country Dealers offer varying kind of discount of finances who in tern

pass it on to the customers in the form of reduced interest rates

Major Manufacturers in Automobile Industry

Maruti Udyog Ltd

General Motors India

Ford India Ltd

Eicher Motors

Bajaj Auto

Daewoo Motors India

Hero Motors

Hindustan Motors

Hyundai Motor India Ltd

Royal Enfield Motors

Telco

TVS Motors

DC Designs

Swaraj Mazda Ltd

6

Major Players in Tyre Industry

MRF

A leading company in the tyre industry MRF Ltd boasts of an enviable track

record The company has continued in the same vein and has been posting

excellent results notwithstanding the winds of recession blowing across the

economy Performance of the company has been commendable in light of the

fact that the user industry is facing a slowdown The company has benefited

from better productivity and operational efficiency The company caters to a

host of impressive clients It has signed on to be the sole supplier for auto

giants like General Motors Fiat and Ford in India The company is also

renowned for its exports which have also been witnessing positive growth

The company has recently entered the radial tyre segment and has met with

positive response The performance of the company could further improve

with the revival of the auto industry Thus MRF Ltd can be expected to retain

its position in this segment However investors can move out of the scrip

considering the outlook for the industry as a whole

CEAT

Being the second largest selling brand in India with a market share of 146 per

cent Ceat caters primarily to the replacement market Due to the strong

growth in the OEM sector the share of the replacement market in the total

revenue of the company has fallen However the production growth in the

automobile sector over the past few years should provide a boost to the

replacement market in the coming years and Ceat could be a major

beneficiary thereof With the advent of multinationals like Goodyear Michelin

Bridgestone and Continental a major shakeout in the industry is imminent

and the same could result in Ceat which is already operating on thin margins

being hived off as a joint venture with Goodyear in collaboration with which

Ceat has already promoted South Asia Tyres for manufacturing radial tyres in

India With a modest track record on the financial front the forthcoming

results may not be encouraging

7

Apollo Tyres Limited

A slow-down in the tyre market and rubber procurement at high prices has put

the brakes on Apollo Tyres Limited (ATL) The company has traditionally been

the market leader in the truck and bus tyres segments ATL caters to the

replacement segment of the domestic market Following its take over of

Premier Tyres ATLs market share has risen Besides the core truck and bus

tyre business fairly considerable part of its turnover comes from automotive

tubes and flaps for which it has commissioned a plant in Pune Despite a

reversal in the fortune of the automobile industry the chief user base of the

companyrsquos products the demand for truck tyres particularly in the

replacement market was not encouraging Even as tyre producers grapple

with over-capacity and high levels of inventory the government stirred a

hornetrsquos nest by proposing free imports of used and second-hand tyres ATL

has conversion agreements for small tyres with TCIL Stallino Tyres and

Rado Its exports are routed through Apollo International to the US Germany

Brazil Sudan Egypt etc A well-entrenched posend this article to a

friendsition in the replacement market favours ATL and the declining price

trend of key inputs like natural rubber and carbon black may provide relief to

its wafer-thin margins At the current price level the scrip has emerged as

an attractive buy thus accumulate its shares in small lots

Tyres for 2007-08 2008-09 Change

Truck amp Bus 13137 12839 (-)2

Passenger Car 16437 16570 1

Jeep 1467 1469 02

Light Commercial Vehicle 5320 5298 (-)04

Tractor Front 1814 1842 2

Tractor Rear 1234 1315 7

8

Tractor Trailer 886 758 (-)14

Animal Drawn Vehicle 409 281 (-)31

Scooter Moped 11604 10883 (-)6

Motor Cycle 27921 30148 8

Industrial 733 568 (-)23

Off the Road (OTR) 141 136 (-)4

Total 81103 82107 1

Apollo Tyres Ltd is considering building a greenfield tyre plant in south India It

is looking at Tamil Nadu and Andhra Pradesh as options According to Onkar

S Kanwar Apollos vice chairman and managing director The project outlay

will be around Rs 300 crore and the plant capacity will be 100 tonnes per

day The project will be funded out of internal accruals and term loans

Kanwar rules out any equity infusion It may be recalled that Apollo Tyres

recently issued partly convertible debentures to the promoters

According to Mr Kanwar the proposed facility will roll out truck and bus (radial

and bial) and earthmoving equipment tyres Further if negotiations with

Hyundai Motors (India) Ltd for original equipment supplies succeed the plant

will also roll out car radials The new investment is part of the Rs 400 crore

investment announced by the company recently The company commissioned

its Rs 80 crore 1 lakh tyres per annum capacity car radial tyres plant at

Baroda this January

For Apollo Tyres a plant in Chennai makes economic sense The company

would be able to cut freight costs while supplying to Ashok Leyland (truck

tyres) Tafe (tractor rear tyres) and Hindustan Motors Ltd for its earthmoving

equipment -- all of whom are located in and around Chennai -- and also for

catering to the southern replacement market Currently Apollo Tyres has two

9

facilities in Kerala from where the southern demand is met The south

accounts for 15-18 per cent of the countrys total truck tyre market according

to Mr Kanwar

The peaceful labour environment in Tamil Nadu would help Apollo Tyres The

company has had serious labour problems at its plants The company can

control costs better with its own new facility -- it is currently outsourcing a

sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars

Stallion And since Chennai is a port city exports too will become

competitive

Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo

Tyres We are studying the economics - incentives sales tax exemptions

etc - of locating the unit in Chennai and Andhra Pradesh The new facility

wherever it may come up will boost Apollo Tyres capacity from the current

levels of 244 million tyres annually

In the meanwhile Apollo Tyres talks with Continental AG remain

inconclusive When asked about these negotiations which could result in the

German company taking a 15 per cent stake in the Indian tyre makers equity

Onkar S Kanwar says The final decision will be taken in three months

The Rs 8500 crore Indian tyre industry has attracted substantial foreign

interest Global majors such as Bridgestone and Michelin have already

invested in Indian production facilities Korean tyres are being imported An

equity partnership with Continental will enable Apollo Tyres to access

advanced technology All the global tyre giants spend huge sums in RampD

efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This

effort is focussed on the study of use of different types of rubber chords and

chemicals in tyre manufacture according to Neeraj KanwarThe problem

Continental is also talking to two other Indian companies - JK Tyres and Modi

Rubber -with both of whom it has technical collaboration

A marginal player in the tyre industry a decade ago Apollo Tyres leads the

replacement market in the heavy vehicle and car radials segments It has

achieved this through acquisitions and contract manufacturing One of the

10

reasons for Apollo Tyres going in for a greenfield project is its confidence to

expand its market share The focus is to increase our market share to 25 per

cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says

Bus and truck tyres account for a lions share of the industrys revenues

Since the OE market is margin-sensitive all the action is focussed on the

lucrative replacement market especially in the heavy vehicles segment

According to Satish Sharma product manager at Apollo Tyres The size of

the truck tyre replacement market is 4 lakh tyres per month and our share in

that is 25 per cent

Though the volume will be small talks have been initiated with Volvo India

Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run

for its money Its Apollo Excel tyres rolled out from its Baroda plant have

received an excellent response in the marketplace according to the company

In the OE segment MRF has been losing its hold to Bridgestone And in the

replacement market Apollo Tyres has become a major threat Apollo Tyres is

now negotiating with Hyundai Motors and Hindustan Motors for OE sales The

Kanwars want to reach top spot in the light commercial vehicles segment by

March 2001 In the two wheeler market Apollo is focussing on the motorcycle

tyres market

To boost sales Apollo Tyres has tied up with Castrol India and Kotak

Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve

their earnings The tie-up with Kotak Mahindra will facilitate sales by providing

finance for tyre purchases for the first time in India Apollo Tyres has

increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to

push sales

With all car makers planning to expand capacities the car radial market is

expected to expand rapidly According to the Apollo management the

company sells 11 lakh of the 5 lakh car radials sold per month in India today

At present the companys tyres are fitted as OE in Hindustan Motors

Ambassador and Contessa models in tractors from Tafe Punjab Tractors

and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco

11

Industry was on a smooth ride till FY08 The industry tonnage production

registered a 5-year Compounded Annual Growth Rate (CAGR) of 802

between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded

a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle

and car tyre categories grew at 1334 1227 and 1398 respectively in

this period

However as the economy in general and automobile industry in specific

slowed down in FY09 the tyre demand too came under pressure In the first

nine months of FY09 the industry managed a tonnage growth of only 219

against a growth of 738 in the same period last year The tyre offtake to the

Original Equipment Manufacturers (OEMs) declined by 617 during this

period The TampB tyre category was the worst affected with the total offtake of

these tyres declining by 001 in the first nine months Also in the face of

global slowdown and stiff Chinese competition the export market offtake

declined by 982 during this period

On the face of these demand-side pressures the tyre industry saw production

adjustments from all the major players in the last couple of months The

government too tried to provide external stimulus by effecting 6 excise duty

cut across industries (the excise duty for tyres was brought down from 14 to

10 wef December 7 2008 and then further reduced to 8 wef February

25 2009) In all the gloom one silver lining for the industry has been the

easing of the raw material prices from September 2008 onwards However

the impact of the fall in commodity prices was not visible in the nine months

results of the companies as the companies were laden with high-price

inventories The benefits of the sublime raw material prices will become

visible only in the last quarter of FY09 provided the demand too supports the

topline

The tyre industry faces competition from China in the domestic market

Imports as a percentage of total TampB tyre production stood at 10 in FY08

with more than 90 of these imports coming from China While the anti-

dumping duty is levied on the import of Chinese TampB bias tyres the industry

now wants it to be extended to Chinese TampB radial tyres to alleviate the

12

import threat In addition the industry is also keen on customs duty relief on

raw materials not producedmanufactured in the country so as to compete

with the Chinese tyres

Radialisation though in its infancy in TampB tyre category is making inroads

Most manufacturers have capex plans for radial TampB tyres with no new

capacity being added for bias tyres This indicates that the industry foresees

radialisation to take further hold in the TampB tyre category In the passenger

car segment radialisation has reached 97 up from 95 a year ago The

Industry is also banking on the customised Off The Road (OTR) tyres and

adding capacity in this category

The Indian manufacturers are looking at increasing their global footprints

Apollo is undertaking an expansion plan at its Dunlop plant in South Africa

Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It

has also entered into a manufacturing agreement with Chinese manufacturers

to sell JK-branded tyres in the export markets

13

COMPANY PROFILE

In todayrsquos world of intense competition and rapid dynamism all the companies

worldwide are tuning their focuses on the customer Suddenly the customer

had succeeded in capturing all the attention of the companies towards him so

much so that the once famous maxim ldquocustomer is the godrdquo has become so

true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of

these companies and none other then the customer has brought this about

Earlier there was a sellers market since goods and services were in short

supply and the sellers use to call the shots But ever since the advent of the

era of globalization there has been total transformation in the way the

customers being perceived Today marketers are directing their efforts in

retaining the customers and customersrsquo base Their focus has shifted towards

integrating the three elements people service and marketing

The customerrsquos importance has assumed imponderable proportions in todayrsquos

world because of the inherent value that the customers command A

customers can ldquomake or breakrdquo a company It is the responsibility of every

company to see that all its customers are equally satisfied with them for one

single dissatisfied customer will tell at least nine others about the

dissatisfaction and will spark off a chain reaction and spell doom for that

company In such scenario retention of the existing customers assumes

diabolical proportion Research has thrown light on some important aspects of

customersrsquo retention it has been proved empirically that acquiring new

customers can cost five times more than the cost involved in satisfying and

retaining current customers

In the past the customers was taken for a ride as there were not many

players in the fields not much importance was attached to product safety

quality service and product appeal The attitude of the manufacture was that

of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization

globalization and privatization (LPG) the market scenario has changed today

Today the customer has a host of defense mechanism like the customers

protection laws regulation of the government the powerful hands of the

14

organization customersrsquo courts switching to substitute or competitors that

offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been

replaced by ldquocaveat venditorrdquo

In the past after sales service was consider as a cost center Companies

were lethargic in attending to customers complaints Availability of trainee

service personal and quality genuine spare parts posed serious problems

However with the rising competition there could not be much product

differentiation as price and quality were comparable and latest technology

was to each and every company in the field Since there could not be much

differential a tangible assets the companies concentrated on the ldquointangible

assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator

Today after sales service is an important aspect of every company and it is

no more considered as a cost center but considered as a profit center Every

organization strives hard to retain its existing customers at any cost since it is

five times costly to get a new customers then to retain an existing customers

Today most of the industries use information technology to best services to

their customers

MARKETING STRATEGY

15

Strategic thinking is key to the evolution of successful marketing strategies

of APOLLO tyre This involves the following analyses

(a) Understanding markets Strategic perspective of the market requires skilful

analysis of the trend and how they affect the market size and demand for the firmrsquos

product

(b) Finding market niches Price service convenience and technology

are some of the niches in Indian market

(c) Product and service planning Analysis of the customerrsquos

promotion of the brand both of the firm and competitors besides an analysis

of the situation in which the customer uses the product

(i) Distribution Structural changes in inventory management mobile

distribution are some of the key factors that are going to affect the distribution

process in the Indian market

(ii) Managing for result With pressure on costs prices and margins

marketers will have to make effective utilization of every rupee spent in

marketing

Market opportunity of Apollo tyres-

Identification of market opportunity is critical before the management of

affirm takes a decision to launch or diversify in any product area This involves

analysis of the following

Size of the market

Marketing strategies and the extent and quality of services rendered by

other firm in the industry

Market programmed required to satisfy market wants

Identification of key success factors in an industry and linking them to a

16

firmrsquos strengths and weakness

Market opportunity

(a) Size of the market

(b) How well the market is served

(c) Prospective inches

(d) Marketing mix required to succeed

(e) Core competencies required

MARKETING MIX

A Marketing mix is the division of groups to make a particular product

by pricing product branding place and quality Although some

marketers[who] have added other Ps such as personnel and packaging the

fundamentals of marketing typically identifies the four Ps of the marketing mix

as referring to-

1 Product

2 Price

3 Promotion

4 Place

17

Product

A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units Intangible

products are often service based like the tourism industry amp the hotel industry

Typical examples of a mass produced tangible object are the tyre A less

obvious but ubiquitous mass produced service is a computer operating

system

18

Price

The price is the amount a customer pays for the product It is determined by a

number of factors including market share competition material costs product

identity and the customers perceived value of the product The business may

increase or decrease the price of product if other stores have the same

product

Place

Place represents the location where a product can be purchased It is often

referred to as the distribution channel It can include any physical store as well

as virtual stores on the Internet

Promotion

Promotion represents all of the communications that a marketer may

use in the marketplace Promotion has four distinct elements - advertising

public relations word of mouth and point of sale A certain amount of

crossover occurs when promotion uses the four principal elements together

which is common in film promotion Advertising covers any communication

that is paid for from television and cinema commercials radio and Internet

adverts through print media and billboards One of the most notable means of

19

promotion today is the Promotional Product as in useful items distributed to

targeted audiences with no obligation attached This category has grown each

year for the past decade while most other forms have suffered It is the only

form of advertising that targets all five senses and has the recipient thanking

the giver Public relations are where the communication is not directly paid for

and includes press releases sponsorship deals exhibitions conferences

seminars or trade fairs and events Word of mouth is any apparently informal

communication about the product by ordinary individuals satisfied customers

or people specifically engaged to create word of mouth momentum Sales

staff often plays an important role in word of mouth and Public Relations

Broadly defined optimizing the marketing mix is the primary responsibility of

marketing By offering the product with the right combination of the four Ps

marketers can improve their results and marketing effectiveness Making

small changes in the marketing mix is typically considered to be a tactical

change Making large changes in any of the four Ps can be considered

strategic For example a large change in the price say from $1900 to $3900

would be considered a strategic change in the position of the product

However a change of $131 to $13099 would be considered a tactical change

potentially related to a promotional offer

The term Marketing Mix however does not imply that the 4P elements

represent options They are not trade-offs but are fundamental marketing

issues that always need to be addressed They are the fundamental actions

that marketing requires whether determined explicitly or by default

Product Profile

The Apollo Tyres ltd Is leading company for all tyres-manufacturing company

in India and The Apollo Tyres Company manufacturing the tyres for the entire

segment (TRUCK LCV PCR FARMS OTR)

20

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 3: Marketing Strategy Opted by the Apollo Tyres1

STUDENT DECLARATION

I here by certify that the project report entitled on ldquoMarketing strategy opted by the

Apollo Tyres rdquo Submitted in partial fulfillment of the requirement for the award

degree of Master in business from MM UNIVERSITY AMBALA is my original

work and not submitted or the award of any other degree diploma fellowship or any

other similar title or prizes anywhere else

SHIVALYA MEHTA ENROLLMENT NO

ODL074032859

2

ACKNOWLEDGEMENT

I would like to take an opportunity to thank all the people who helped me in collecting

necessary information and making of the report I am grateful to all of them for their

time energy and wisdom

Getting a project ready requires the work and effort of many people I would like all

those who have contributed in completing this project First of all I would like to

send my sincere thanks to DR SK SENAPATI for his helpful hand in the

completion of my project

Shivalya MehtaMBA

3

TOPIC CONTENT

INTRODUCTION 1

COMPANY PROFILE25

LITERATURE REVIEW41

RESEARCH METHODOLOGY57

FINDING AND ANALYSIS59

CONCLUSION71

RECOMMENDATION73

BIBLIOGRAPHY75

ANNEXURE ndash QUESTIONNAIRE76

4

INTRODUCTION

INDUSTRY ANALYSIS

Over a period of more than two decades the Indian Automobile Industry has

been driving its own growth through phases The entry of Suzuki Corporation

in Indian passenger car manufacturing is often pointed as the first sign of

India turning to a market economy Since then the automobile sector

witnessed rapid growth year after year By late-90s the industry reached self

reliance in engine and component manufacturing from the status of large

scale importer

With comparatively higher rate of economic growth rate index against that of

great global powers India has become a hub of domestic and exports

business

The automobile sector has been contributing its share to the shining economic

performance of India in the recent years With the Indian middle class earning

higher per capita income more people are ready to own private vehicles

including cars and two-wheelers Product movements and manned services

have boosted in the sales of medium and sized commercial vehicles for

passenger and goods transport

The data obtained from Ministry of Commerce and Industry shows high

growth obtained since 2001-02 in automobile production continuing in the first

three quarters of the 2004-05 Annual growth was 160 per cent in April-

December 2004 the growth rate in 2003-04 was 151 per cent The

automobile industry grew at a compound annual growth rate (CAGR) of 22

per cent between 1992 and 1997

With investment exceeding Rs 50000 crore the turnover of the automobile

industry exceeded Rs 59518 crore in 2002-03 Including turnover of the

auto-component sector the automotive industrys turnover which was above

Rs 84000 crore in 2002-03 is estimated to have exceeded Rs100000

crore ( USD 22 74 billion) in 2003-04

Automobile Dealers Network in India

5

In terms of Car dealer networks and authorized service stations Maruti leads

the pack with Dealer networks and workshops across the country The other

leading automobile manufacturers are also trying to cope up and are opening

their service stations and dealer workshops in all the metros and major cities

of the country Dealers offer varying kind of discount of finances who in tern

pass it on to the customers in the form of reduced interest rates

Major Manufacturers in Automobile Industry

Maruti Udyog Ltd

General Motors India

Ford India Ltd

Eicher Motors

Bajaj Auto

Daewoo Motors India

Hero Motors

Hindustan Motors

Hyundai Motor India Ltd

Royal Enfield Motors

Telco

TVS Motors

DC Designs

Swaraj Mazda Ltd

6

Major Players in Tyre Industry

MRF

A leading company in the tyre industry MRF Ltd boasts of an enviable track

record The company has continued in the same vein and has been posting

excellent results notwithstanding the winds of recession blowing across the

economy Performance of the company has been commendable in light of the

fact that the user industry is facing a slowdown The company has benefited

from better productivity and operational efficiency The company caters to a

host of impressive clients It has signed on to be the sole supplier for auto

giants like General Motors Fiat and Ford in India The company is also

renowned for its exports which have also been witnessing positive growth

The company has recently entered the radial tyre segment and has met with

positive response The performance of the company could further improve

with the revival of the auto industry Thus MRF Ltd can be expected to retain

its position in this segment However investors can move out of the scrip

considering the outlook for the industry as a whole

CEAT

Being the second largest selling brand in India with a market share of 146 per

cent Ceat caters primarily to the replacement market Due to the strong

growth in the OEM sector the share of the replacement market in the total

revenue of the company has fallen However the production growth in the

automobile sector over the past few years should provide a boost to the

replacement market in the coming years and Ceat could be a major

beneficiary thereof With the advent of multinationals like Goodyear Michelin

Bridgestone and Continental a major shakeout in the industry is imminent

and the same could result in Ceat which is already operating on thin margins

being hived off as a joint venture with Goodyear in collaboration with which

Ceat has already promoted South Asia Tyres for manufacturing radial tyres in

India With a modest track record on the financial front the forthcoming

results may not be encouraging

7

Apollo Tyres Limited

A slow-down in the tyre market and rubber procurement at high prices has put

the brakes on Apollo Tyres Limited (ATL) The company has traditionally been

the market leader in the truck and bus tyres segments ATL caters to the

replacement segment of the domestic market Following its take over of

Premier Tyres ATLs market share has risen Besides the core truck and bus

tyre business fairly considerable part of its turnover comes from automotive

tubes and flaps for which it has commissioned a plant in Pune Despite a

reversal in the fortune of the automobile industry the chief user base of the

companyrsquos products the demand for truck tyres particularly in the

replacement market was not encouraging Even as tyre producers grapple

with over-capacity and high levels of inventory the government stirred a

hornetrsquos nest by proposing free imports of used and second-hand tyres ATL

has conversion agreements for small tyres with TCIL Stallino Tyres and

Rado Its exports are routed through Apollo International to the US Germany

Brazil Sudan Egypt etc A well-entrenched posend this article to a

friendsition in the replacement market favours ATL and the declining price

trend of key inputs like natural rubber and carbon black may provide relief to

its wafer-thin margins At the current price level the scrip has emerged as

an attractive buy thus accumulate its shares in small lots

Tyres for 2007-08 2008-09 Change

Truck amp Bus 13137 12839 (-)2

Passenger Car 16437 16570 1

Jeep 1467 1469 02

Light Commercial Vehicle 5320 5298 (-)04

Tractor Front 1814 1842 2

Tractor Rear 1234 1315 7

8

Tractor Trailer 886 758 (-)14

Animal Drawn Vehicle 409 281 (-)31

Scooter Moped 11604 10883 (-)6

Motor Cycle 27921 30148 8

Industrial 733 568 (-)23

Off the Road (OTR) 141 136 (-)4

Total 81103 82107 1

Apollo Tyres Ltd is considering building a greenfield tyre plant in south India It

is looking at Tamil Nadu and Andhra Pradesh as options According to Onkar

S Kanwar Apollos vice chairman and managing director The project outlay

will be around Rs 300 crore and the plant capacity will be 100 tonnes per

day The project will be funded out of internal accruals and term loans

Kanwar rules out any equity infusion It may be recalled that Apollo Tyres

recently issued partly convertible debentures to the promoters

According to Mr Kanwar the proposed facility will roll out truck and bus (radial

and bial) and earthmoving equipment tyres Further if negotiations with

Hyundai Motors (India) Ltd for original equipment supplies succeed the plant

will also roll out car radials The new investment is part of the Rs 400 crore

investment announced by the company recently The company commissioned

its Rs 80 crore 1 lakh tyres per annum capacity car radial tyres plant at

Baroda this January

For Apollo Tyres a plant in Chennai makes economic sense The company

would be able to cut freight costs while supplying to Ashok Leyland (truck

tyres) Tafe (tractor rear tyres) and Hindustan Motors Ltd for its earthmoving

equipment -- all of whom are located in and around Chennai -- and also for

catering to the southern replacement market Currently Apollo Tyres has two

9

facilities in Kerala from where the southern demand is met The south

accounts for 15-18 per cent of the countrys total truck tyre market according

to Mr Kanwar

The peaceful labour environment in Tamil Nadu would help Apollo Tyres The

company has had serious labour problems at its plants The company can

control costs better with its own new facility -- it is currently outsourcing a

sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars

Stallion And since Chennai is a port city exports too will become

competitive

Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo

Tyres We are studying the economics - incentives sales tax exemptions

etc - of locating the unit in Chennai and Andhra Pradesh The new facility

wherever it may come up will boost Apollo Tyres capacity from the current

levels of 244 million tyres annually

In the meanwhile Apollo Tyres talks with Continental AG remain

inconclusive When asked about these negotiations which could result in the

German company taking a 15 per cent stake in the Indian tyre makers equity

Onkar S Kanwar says The final decision will be taken in three months

The Rs 8500 crore Indian tyre industry has attracted substantial foreign

interest Global majors such as Bridgestone and Michelin have already

invested in Indian production facilities Korean tyres are being imported An

equity partnership with Continental will enable Apollo Tyres to access

advanced technology All the global tyre giants spend huge sums in RampD

efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This

effort is focussed on the study of use of different types of rubber chords and

chemicals in tyre manufacture according to Neeraj KanwarThe problem

Continental is also talking to two other Indian companies - JK Tyres and Modi

Rubber -with both of whom it has technical collaboration

A marginal player in the tyre industry a decade ago Apollo Tyres leads the

replacement market in the heavy vehicle and car radials segments It has

achieved this through acquisitions and contract manufacturing One of the

10

reasons for Apollo Tyres going in for a greenfield project is its confidence to

expand its market share The focus is to increase our market share to 25 per

cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says

Bus and truck tyres account for a lions share of the industrys revenues

Since the OE market is margin-sensitive all the action is focussed on the

lucrative replacement market especially in the heavy vehicles segment

According to Satish Sharma product manager at Apollo Tyres The size of

the truck tyre replacement market is 4 lakh tyres per month and our share in

that is 25 per cent

Though the volume will be small talks have been initiated with Volvo India

Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run

for its money Its Apollo Excel tyres rolled out from its Baroda plant have

received an excellent response in the marketplace according to the company

In the OE segment MRF has been losing its hold to Bridgestone And in the

replacement market Apollo Tyres has become a major threat Apollo Tyres is

now negotiating with Hyundai Motors and Hindustan Motors for OE sales The

Kanwars want to reach top spot in the light commercial vehicles segment by

March 2001 In the two wheeler market Apollo is focussing on the motorcycle

tyres market

To boost sales Apollo Tyres has tied up with Castrol India and Kotak

Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve

their earnings The tie-up with Kotak Mahindra will facilitate sales by providing

finance for tyre purchases for the first time in India Apollo Tyres has

increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to

push sales

With all car makers planning to expand capacities the car radial market is

expected to expand rapidly According to the Apollo management the

company sells 11 lakh of the 5 lakh car radials sold per month in India today

At present the companys tyres are fitted as OE in Hindustan Motors

Ambassador and Contessa models in tractors from Tafe Punjab Tractors

and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco

11

Industry was on a smooth ride till FY08 The industry tonnage production

registered a 5-year Compounded Annual Growth Rate (CAGR) of 802

between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded

a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle

and car tyre categories grew at 1334 1227 and 1398 respectively in

this period

However as the economy in general and automobile industry in specific

slowed down in FY09 the tyre demand too came under pressure In the first

nine months of FY09 the industry managed a tonnage growth of only 219

against a growth of 738 in the same period last year The tyre offtake to the

Original Equipment Manufacturers (OEMs) declined by 617 during this

period The TampB tyre category was the worst affected with the total offtake of

these tyres declining by 001 in the first nine months Also in the face of

global slowdown and stiff Chinese competition the export market offtake

declined by 982 during this period

On the face of these demand-side pressures the tyre industry saw production

adjustments from all the major players in the last couple of months The

government too tried to provide external stimulus by effecting 6 excise duty

cut across industries (the excise duty for tyres was brought down from 14 to

10 wef December 7 2008 and then further reduced to 8 wef February

25 2009) In all the gloom one silver lining for the industry has been the

easing of the raw material prices from September 2008 onwards However

the impact of the fall in commodity prices was not visible in the nine months

results of the companies as the companies were laden with high-price

inventories The benefits of the sublime raw material prices will become

visible only in the last quarter of FY09 provided the demand too supports the

topline

The tyre industry faces competition from China in the domestic market

Imports as a percentage of total TampB tyre production stood at 10 in FY08

with more than 90 of these imports coming from China While the anti-

dumping duty is levied on the import of Chinese TampB bias tyres the industry

now wants it to be extended to Chinese TampB radial tyres to alleviate the

12

import threat In addition the industry is also keen on customs duty relief on

raw materials not producedmanufactured in the country so as to compete

with the Chinese tyres

Radialisation though in its infancy in TampB tyre category is making inroads

Most manufacturers have capex plans for radial TampB tyres with no new

capacity being added for bias tyres This indicates that the industry foresees

radialisation to take further hold in the TampB tyre category In the passenger

car segment radialisation has reached 97 up from 95 a year ago The

Industry is also banking on the customised Off The Road (OTR) tyres and

adding capacity in this category

The Indian manufacturers are looking at increasing their global footprints

Apollo is undertaking an expansion plan at its Dunlop plant in South Africa

Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It

has also entered into a manufacturing agreement with Chinese manufacturers

to sell JK-branded tyres in the export markets

13

COMPANY PROFILE

In todayrsquos world of intense competition and rapid dynamism all the companies

worldwide are tuning their focuses on the customer Suddenly the customer

had succeeded in capturing all the attention of the companies towards him so

much so that the once famous maxim ldquocustomer is the godrdquo has become so

true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of

these companies and none other then the customer has brought this about

Earlier there was a sellers market since goods and services were in short

supply and the sellers use to call the shots But ever since the advent of the

era of globalization there has been total transformation in the way the

customers being perceived Today marketers are directing their efforts in

retaining the customers and customersrsquo base Their focus has shifted towards

integrating the three elements people service and marketing

The customerrsquos importance has assumed imponderable proportions in todayrsquos

world because of the inherent value that the customers command A

customers can ldquomake or breakrdquo a company It is the responsibility of every

company to see that all its customers are equally satisfied with them for one

single dissatisfied customer will tell at least nine others about the

dissatisfaction and will spark off a chain reaction and spell doom for that

company In such scenario retention of the existing customers assumes

diabolical proportion Research has thrown light on some important aspects of

customersrsquo retention it has been proved empirically that acquiring new

customers can cost five times more than the cost involved in satisfying and

retaining current customers

In the past the customers was taken for a ride as there were not many

players in the fields not much importance was attached to product safety

quality service and product appeal The attitude of the manufacture was that

of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization

globalization and privatization (LPG) the market scenario has changed today

Today the customer has a host of defense mechanism like the customers

protection laws regulation of the government the powerful hands of the

14

organization customersrsquo courts switching to substitute or competitors that

offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been

replaced by ldquocaveat venditorrdquo

In the past after sales service was consider as a cost center Companies

were lethargic in attending to customers complaints Availability of trainee

service personal and quality genuine spare parts posed serious problems

However with the rising competition there could not be much product

differentiation as price and quality were comparable and latest technology

was to each and every company in the field Since there could not be much

differential a tangible assets the companies concentrated on the ldquointangible

assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator

Today after sales service is an important aspect of every company and it is

no more considered as a cost center but considered as a profit center Every

organization strives hard to retain its existing customers at any cost since it is

five times costly to get a new customers then to retain an existing customers

Today most of the industries use information technology to best services to

their customers

MARKETING STRATEGY

15

Strategic thinking is key to the evolution of successful marketing strategies

of APOLLO tyre This involves the following analyses

(a) Understanding markets Strategic perspective of the market requires skilful

analysis of the trend and how they affect the market size and demand for the firmrsquos

product

(b) Finding market niches Price service convenience and technology

are some of the niches in Indian market

(c) Product and service planning Analysis of the customerrsquos

promotion of the brand both of the firm and competitors besides an analysis

of the situation in which the customer uses the product

(i) Distribution Structural changes in inventory management mobile

distribution are some of the key factors that are going to affect the distribution

process in the Indian market

(ii) Managing for result With pressure on costs prices and margins

marketers will have to make effective utilization of every rupee spent in

marketing

Market opportunity of Apollo tyres-

Identification of market opportunity is critical before the management of

affirm takes a decision to launch or diversify in any product area This involves

analysis of the following

Size of the market

Marketing strategies and the extent and quality of services rendered by

other firm in the industry

Market programmed required to satisfy market wants

Identification of key success factors in an industry and linking them to a

16

firmrsquos strengths and weakness

Market opportunity

(a) Size of the market

(b) How well the market is served

(c) Prospective inches

(d) Marketing mix required to succeed

(e) Core competencies required

MARKETING MIX

A Marketing mix is the division of groups to make a particular product

by pricing product branding place and quality Although some

marketers[who] have added other Ps such as personnel and packaging the

fundamentals of marketing typically identifies the four Ps of the marketing mix

as referring to-

1 Product

2 Price

3 Promotion

4 Place

17

Product

A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units Intangible

products are often service based like the tourism industry amp the hotel industry

Typical examples of a mass produced tangible object are the tyre A less

obvious but ubiquitous mass produced service is a computer operating

system

18

Price

The price is the amount a customer pays for the product It is determined by a

number of factors including market share competition material costs product

identity and the customers perceived value of the product The business may

increase or decrease the price of product if other stores have the same

product

Place

Place represents the location where a product can be purchased It is often

referred to as the distribution channel It can include any physical store as well

as virtual stores on the Internet

Promotion

Promotion represents all of the communications that a marketer may

use in the marketplace Promotion has four distinct elements - advertising

public relations word of mouth and point of sale A certain amount of

crossover occurs when promotion uses the four principal elements together

which is common in film promotion Advertising covers any communication

that is paid for from television and cinema commercials radio and Internet

adverts through print media and billboards One of the most notable means of

19

promotion today is the Promotional Product as in useful items distributed to

targeted audiences with no obligation attached This category has grown each

year for the past decade while most other forms have suffered It is the only

form of advertising that targets all five senses and has the recipient thanking

the giver Public relations are where the communication is not directly paid for

and includes press releases sponsorship deals exhibitions conferences

seminars or trade fairs and events Word of mouth is any apparently informal

communication about the product by ordinary individuals satisfied customers

or people specifically engaged to create word of mouth momentum Sales

staff often plays an important role in word of mouth and Public Relations

Broadly defined optimizing the marketing mix is the primary responsibility of

marketing By offering the product with the right combination of the four Ps

marketers can improve their results and marketing effectiveness Making

small changes in the marketing mix is typically considered to be a tactical

change Making large changes in any of the four Ps can be considered

strategic For example a large change in the price say from $1900 to $3900

would be considered a strategic change in the position of the product

However a change of $131 to $13099 would be considered a tactical change

potentially related to a promotional offer

The term Marketing Mix however does not imply that the 4P elements

represent options They are not trade-offs but are fundamental marketing

issues that always need to be addressed They are the fundamental actions

that marketing requires whether determined explicitly or by default

Product Profile

The Apollo Tyres ltd Is leading company for all tyres-manufacturing company

in India and The Apollo Tyres Company manufacturing the tyres for the entire

segment (TRUCK LCV PCR FARMS OTR)

20

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 4: Marketing Strategy Opted by the Apollo Tyres1

ACKNOWLEDGEMENT

I would like to take an opportunity to thank all the people who helped me in collecting

necessary information and making of the report I am grateful to all of them for their

time energy and wisdom

Getting a project ready requires the work and effort of many people I would like all

those who have contributed in completing this project First of all I would like to

send my sincere thanks to DR SK SENAPATI for his helpful hand in the

completion of my project

Shivalya MehtaMBA

3

TOPIC CONTENT

INTRODUCTION 1

COMPANY PROFILE25

LITERATURE REVIEW41

RESEARCH METHODOLOGY57

FINDING AND ANALYSIS59

CONCLUSION71

RECOMMENDATION73

BIBLIOGRAPHY75

ANNEXURE ndash QUESTIONNAIRE76

4

INTRODUCTION

INDUSTRY ANALYSIS

Over a period of more than two decades the Indian Automobile Industry has

been driving its own growth through phases The entry of Suzuki Corporation

in Indian passenger car manufacturing is often pointed as the first sign of

India turning to a market economy Since then the automobile sector

witnessed rapid growth year after year By late-90s the industry reached self

reliance in engine and component manufacturing from the status of large

scale importer

With comparatively higher rate of economic growth rate index against that of

great global powers India has become a hub of domestic and exports

business

The automobile sector has been contributing its share to the shining economic

performance of India in the recent years With the Indian middle class earning

higher per capita income more people are ready to own private vehicles

including cars and two-wheelers Product movements and manned services

have boosted in the sales of medium and sized commercial vehicles for

passenger and goods transport

The data obtained from Ministry of Commerce and Industry shows high

growth obtained since 2001-02 in automobile production continuing in the first

three quarters of the 2004-05 Annual growth was 160 per cent in April-

December 2004 the growth rate in 2003-04 was 151 per cent The

automobile industry grew at a compound annual growth rate (CAGR) of 22

per cent between 1992 and 1997

With investment exceeding Rs 50000 crore the turnover of the automobile

industry exceeded Rs 59518 crore in 2002-03 Including turnover of the

auto-component sector the automotive industrys turnover which was above

Rs 84000 crore in 2002-03 is estimated to have exceeded Rs100000

crore ( USD 22 74 billion) in 2003-04

Automobile Dealers Network in India

5

In terms of Car dealer networks and authorized service stations Maruti leads

the pack with Dealer networks and workshops across the country The other

leading automobile manufacturers are also trying to cope up and are opening

their service stations and dealer workshops in all the metros and major cities

of the country Dealers offer varying kind of discount of finances who in tern

pass it on to the customers in the form of reduced interest rates

Major Manufacturers in Automobile Industry

Maruti Udyog Ltd

General Motors India

Ford India Ltd

Eicher Motors

Bajaj Auto

Daewoo Motors India

Hero Motors

Hindustan Motors

Hyundai Motor India Ltd

Royal Enfield Motors

Telco

TVS Motors

DC Designs

Swaraj Mazda Ltd

6

Major Players in Tyre Industry

MRF

A leading company in the tyre industry MRF Ltd boasts of an enviable track

record The company has continued in the same vein and has been posting

excellent results notwithstanding the winds of recession blowing across the

economy Performance of the company has been commendable in light of the

fact that the user industry is facing a slowdown The company has benefited

from better productivity and operational efficiency The company caters to a

host of impressive clients It has signed on to be the sole supplier for auto

giants like General Motors Fiat and Ford in India The company is also

renowned for its exports which have also been witnessing positive growth

The company has recently entered the radial tyre segment and has met with

positive response The performance of the company could further improve

with the revival of the auto industry Thus MRF Ltd can be expected to retain

its position in this segment However investors can move out of the scrip

considering the outlook for the industry as a whole

CEAT

Being the second largest selling brand in India with a market share of 146 per

cent Ceat caters primarily to the replacement market Due to the strong

growth in the OEM sector the share of the replacement market in the total

revenue of the company has fallen However the production growth in the

automobile sector over the past few years should provide a boost to the

replacement market in the coming years and Ceat could be a major

beneficiary thereof With the advent of multinationals like Goodyear Michelin

Bridgestone and Continental a major shakeout in the industry is imminent

and the same could result in Ceat which is already operating on thin margins

being hived off as a joint venture with Goodyear in collaboration with which

Ceat has already promoted South Asia Tyres for manufacturing radial tyres in

India With a modest track record on the financial front the forthcoming

results may not be encouraging

7

Apollo Tyres Limited

A slow-down in the tyre market and rubber procurement at high prices has put

the brakes on Apollo Tyres Limited (ATL) The company has traditionally been

the market leader in the truck and bus tyres segments ATL caters to the

replacement segment of the domestic market Following its take over of

Premier Tyres ATLs market share has risen Besides the core truck and bus

tyre business fairly considerable part of its turnover comes from automotive

tubes and flaps for which it has commissioned a plant in Pune Despite a

reversal in the fortune of the automobile industry the chief user base of the

companyrsquos products the demand for truck tyres particularly in the

replacement market was not encouraging Even as tyre producers grapple

with over-capacity and high levels of inventory the government stirred a

hornetrsquos nest by proposing free imports of used and second-hand tyres ATL

has conversion agreements for small tyres with TCIL Stallino Tyres and

Rado Its exports are routed through Apollo International to the US Germany

Brazil Sudan Egypt etc A well-entrenched posend this article to a

friendsition in the replacement market favours ATL and the declining price

trend of key inputs like natural rubber and carbon black may provide relief to

its wafer-thin margins At the current price level the scrip has emerged as

an attractive buy thus accumulate its shares in small lots

Tyres for 2007-08 2008-09 Change

Truck amp Bus 13137 12839 (-)2

Passenger Car 16437 16570 1

Jeep 1467 1469 02

Light Commercial Vehicle 5320 5298 (-)04

Tractor Front 1814 1842 2

Tractor Rear 1234 1315 7

8

Tractor Trailer 886 758 (-)14

Animal Drawn Vehicle 409 281 (-)31

Scooter Moped 11604 10883 (-)6

Motor Cycle 27921 30148 8

Industrial 733 568 (-)23

Off the Road (OTR) 141 136 (-)4

Total 81103 82107 1

Apollo Tyres Ltd is considering building a greenfield tyre plant in south India It

is looking at Tamil Nadu and Andhra Pradesh as options According to Onkar

S Kanwar Apollos vice chairman and managing director The project outlay

will be around Rs 300 crore and the plant capacity will be 100 tonnes per

day The project will be funded out of internal accruals and term loans

Kanwar rules out any equity infusion It may be recalled that Apollo Tyres

recently issued partly convertible debentures to the promoters

According to Mr Kanwar the proposed facility will roll out truck and bus (radial

and bial) and earthmoving equipment tyres Further if negotiations with

Hyundai Motors (India) Ltd for original equipment supplies succeed the plant

will also roll out car radials The new investment is part of the Rs 400 crore

investment announced by the company recently The company commissioned

its Rs 80 crore 1 lakh tyres per annum capacity car radial tyres plant at

Baroda this January

For Apollo Tyres a plant in Chennai makes economic sense The company

would be able to cut freight costs while supplying to Ashok Leyland (truck

tyres) Tafe (tractor rear tyres) and Hindustan Motors Ltd for its earthmoving

equipment -- all of whom are located in and around Chennai -- and also for

catering to the southern replacement market Currently Apollo Tyres has two

9

facilities in Kerala from where the southern demand is met The south

accounts for 15-18 per cent of the countrys total truck tyre market according

to Mr Kanwar

The peaceful labour environment in Tamil Nadu would help Apollo Tyres The

company has had serious labour problems at its plants The company can

control costs better with its own new facility -- it is currently outsourcing a

sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars

Stallion And since Chennai is a port city exports too will become

competitive

Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo

Tyres We are studying the economics - incentives sales tax exemptions

etc - of locating the unit in Chennai and Andhra Pradesh The new facility

wherever it may come up will boost Apollo Tyres capacity from the current

levels of 244 million tyres annually

In the meanwhile Apollo Tyres talks with Continental AG remain

inconclusive When asked about these negotiations which could result in the

German company taking a 15 per cent stake in the Indian tyre makers equity

Onkar S Kanwar says The final decision will be taken in three months

The Rs 8500 crore Indian tyre industry has attracted substantial foreign

interest Global majors such as Bridgestone and Michelin have already

invested in Indian production facilities Korean tyres are being imported An

equity partnership with Continental will enable Apollo Tyres to access

advanced technology All the global tyre giants spend huge sums in RampD

efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This

effort is focussed on the study of use of different types of rubber chords and

chemicals in tyre manufacture according to Neeraj KanwarThe problem

Continental is also talking to two other Indian companies - JK Tyres and Modi

Rubber -with both of whom it has technical collaboration

A marginal player in the tyre industry a decade ago Apollo Tyres leads the

replacement market in the heavy vehicle and car radials segments It has

achieved this through acquisitions and contract manufacturing One of the

10

reasons for Apollo Tyres going in for a greenfield project is its confidence to

expand its market share The focus is to increase our market share to 25 per

cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says

Bus and truck tyres account for a lions share of the industrys revenues

Since the OE market is margin-sensitive all the action is focussed on the

lucrative replacement market especially in the heavy vehicles segment

According to Satish Sharma product manager at Apollo Tyres The size of

the truck tyre replacement market is 4 lakh tyres per month and our share in

that is 25 per cent

Though the volume will be small talks have been initiated with Volvo India

Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run

for its money Its Apollo Excel tyres rolled out from its Baroda plant have

received an excellent response in the marketplace according to the company

In the OE segment MRF has been losing its hold to Bridgestone And in the

replacement market Apollo Tyres has become a major threat Apollo Tyres is

now negotiating with Hyundai Motors and Hindustan Motors for OE sales The

Kanwars want to reach top spot in the light commercial vehicles segment by

March 2001 In the two wheeler market Apollo is focussing on the motorcycle

tyres market

To boost sales Apollo Tyres has tied up with Castrol India and Kotak

Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve

their earnings The tie-up with Kotak Mahindra will facilitate sales by providing

finance for tyre purchases for the first time in India Apollo Tyres has

increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to

push sales

With all car makers planning to expand capacities the car radial market is

expected to expand rapidly According to the Apollo management the

company sells 11 lakh of the 5 lakh car radials sold per month in India today

At present the companys tyres are fitted as OE in Hindustan Motors

Ambassador and Contessa models in tractors from Tafe Punjab Tractors

and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco

11

Industry was on a smooth ride till FY08 The industry tonnage production

registered a 5-year Compounded Annual Growth Rate (CAGR) of 802

between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded

a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle

and car tyre categories grew at 1334 1227 and 1398 respectively in

this period

However as the economy in general and automobile industry in specific

slowed down in FY09 the tyre demand too came under pressure In the first

nine months of FY09 the industry managed a tonnage growth of only 219

against a growth of 738 in the same period last year The tyre offtake to the

Original Equipment Manufacturers (OEMs) declined by 617 during this

period The TampB tyre category was the worst affected with the total offtake of

these tyres declining by 001 in the first nine months Also in the face of

global slowdown and stiff Chinese competition the export market offtake

declined by 982 during this period

On the face of these demand-side pressures the tyre industry saw production

adjustments from all the major players in the last couple of months The

government too tried to provide external stimulus by effecting 6 excise duty

cut across industries (the excise duty for tyres was brought down from 14 to

10 wef December 7 2008 and then further reduced to 8 wef February

25 2009) In all the gloom one silver lining for the industry has been the

easing of the raw material prices from September 2008 onwards However

the impact of the fall in commodity prices was not visible in the nine months

results of the companies as the companies were laden with high-price

inventories The benefits of the sublime raw material prices will become

visible only in the last quarter of FY09 provided the demand too supports the

topline

The tyre industry faces competition from China in the domestic market

Imports as a percentage of total TampB tyre production stood at 10 in FY08

with more than 90 of these imports coming from China While the anti-

dumping duty is levied on the import of Chinese TampB bias tyres the industry

now wants it to be extended to Chinese TampB radial tyres to alleviate the

12

import threat In addition the industry is also keen on customs duty relief on

raw materials not producedmanufactured in the country so as to compete

with the Chinese tyres

Radialisation though in its infancy in TampB tyre category is making inroads

Most manufacturers have capex plans for radial TampB tyres with no new

capacity being added for bias tyres This indicates that the industry foresees

radialisation to take further hold in the TampB tyre category In the passenger

car segment radialisation has reached 97 up from 95 a year ago The

Industry is also banking on the customised Off The Road (OTR) tyres and

adding capacity in this category

The Indian manufacturers are looking at increasing their global footprints

Apollo is undertaking an expansion plan at its Dunlop plant in South Africa

Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It

has also entered into a manufacturing agreement with Chinese manufacturers

to sell JK-branded tyres in the export markets

13

COMPANY PROFILE

In todayrsquos world of intense competition and rapid dynamism all the companies

worldwide are tuning their focuses on the customer Suddenly the customer

had succeeded in capturing all the attention of the companies towards him so

much so that the once famous maxim ldquocustomer is the godrdquo has become so

true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of

these companies and none other then the customer has brought this about

Earlier there was a sellers market since goods and services were in short

supply and the sellers use to call the shots But ever since the advent of the

era of globalization there has been total transformation in the way the

customers being perceived Today marketers are directing their efforts in

retaining the customers and customersrsquo base Their focus has shifted towards

integrating the three elements people service and marketing

The customerrsquos importance has assumed imponderable proportions in todayrsquos

world because of the inherent value that the customers command A

customers can ldquomake or breakrdquo a company It is the responsibility of every

company to see that all its customers are equally satisfied with them for one

single dissatisfied customer will tell at least nine others about the

dissatisfaction and will spark off a chain reaction and spell doom for that

company In such scenario retention of the existing customers assumes

diabolical proportion Research has thrown light on some important aspects of

customersrsquo retention it has been proved empirically that acquiring new

customers can cost five times more than the cost involved in satisfying and

retaining current customers

In the past the customers was taken for a ride as there were not many

players in the fields not much importance was attached to product safety

quality service and product appeal The attitude of the manufacture was that

of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization

globalization and privatization (LPG) the market scenario has changed today

Today the customer has a host of defense mechanism like the customers

protection laws regulation of the government the powerful hands of the

14

organization customersrsquo courts switching to substitute or competitors that

offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been

replaced by ldquocaveat venditorrdquo

In the past after sales service was consider as a cost center Companies

were lethargic in attending to customers complaints Availability of trainee

service personal and quality genuine spare parts posed serious problems

However with the rising competition there could not be much product

differentiation as price and quality were comparable and latest technology

was to each and every company in the field Since there could not be much

differential a tangible assets the companies concentrated on the ldquointangible

assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator

Today after sales service is an important aspect of every company and it is

no more considered as a cost center but considered as a profit center Every

organization strives hard to retain its existing customers at any cost since it is

five times costly to get a new customers then to retain an existing customers

Today most of the industries use information technology to best services to

their customers

MARKETING STRATEGY

15

Strategic thinking is key to the evolution of successful marketing strategies

of APOLLO tyre This involves the following analyses

(a) Understanding markets Strategic perspective of the market requires skilful

analysis of the trend and how they affect the market size and demand for the firmrsquos

product

(b) Finding market niches Price service convenience and technology

are some of the niches in Indian market

(c) Product and service planning Analysis of the customerrsquos

promotion of the brand both of the firm and competitors besides an analysis

of the situation in which the customer uses the product

(i) Distribution Structural changes in inventory management mobile

distribution are some of the key factors that are going to affect the distribution

process in the Indian market

(ii) Managing for result With pressure on costs prices and margins

marketers will have to make effective utilization of every rupee spent in

marketing

Market opportunity of Apollo tyres-

Identification of market opportunity is critical before the management of

affirm takes a decision to launch or diversify in any product area This involves

analysis of the following

Size of the market

Marketing strategies and the extent and quality of services rendered by

other firm in the industry

Market programmed required to satisfy market wants

Identification of key success factors in an industry and linking them to a

16

firmrsquos strengths and weakness

Market opportunity

(a) Size of the market

(b) How well the market is served

(c) Prospective inches

(d) Marketing mix required to succeed

(e) Core competencies required

MARKETING MIX

A Marketing mix is the division of groups to make a particular product

by pricing product branding place and quality Although some

marketers[who] have added other Ps such as personnel and packaging the

fundamentals of marketing typically identifies the four Ps of the marketing mix

as referring to-

1 Product

2 Price

3 Promotion

4 Place

17

Product

A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units Intangible

products are often service based like the tourism industry amp the hotel industry

Typical examples of a mass produced tangible object are the tyre A less

obvious but ubiquitous mass produced service is a computer operating

system

18

Price

The price is the amount a customer pays for the product It is determined by a

number of factors including market share competition material costs product

identity and the customers perceived value of the product The business may

increase or decrease the price of product if other stores have the same

product

Place

Place represents the location where a product can be purchased It is often

referred to as the distribution channel It can include any physical store as well

as virtual stores on the Internet

Promotion

Promotion represents all of the communications that a marketer may

use in the marketplace Promotion has four distinct elements - advertising

public relations word of mouth and point of sale A certain amount of

crossover occurs when promotion uses the four principal elements together

which is common in film promotion Advertising covers any communication

that is paid for from television and cinema commercials radio and Internet

adverts through print media and billboards One of the most notable means of

19

promotion today is the Promotional Product as in useful items distributed to

targeted audiences with no obligation attached This category has grown each

year for the past decade while most other forms have suffered It is the only

form of advertising that targets all five senses and has the recipient thanking

the giver Public relations are where the communication is not directly paid for

and includes press releases sponsorship deals exhibitions conferences

seminars or trade fairs and events Word of mouth is any apparently informal

communication about the product by ordinary individuals satisfied customers

or people specifically engaged to create word of mouth momentum Sales

staff often plays an important role in word of mouth and Public Relations

Broadly defined optimizing the marketing mix is the primary responsibility of

marketing By offering the product with the right combination of the four Ps

marketers can improve their results and marketing effectiveness Making

small changes in the marketing mix is typically considered to be a tactical

change Making large changes in any of the four Ps can be considered

strategic For example a large change in the price say from $1900 to $3900

would be considered a strategic change in the position of the product

However a change of $131 to $13099 would be considered a tactical change

potentially related to a promotional offer

The term Marketing Mix however does not imply that the 4P elements

represent options They are not trade-offs but are fundamental marketing

issues that always need to be addressed They are the fundamental actions

that marketing requires whether determined explicitly or by default

Product Profile

The Apollo Tyres ltd Is leading company for all tyres-manufacturing company

in India and The Apollo Tyres Company manufacturing the tyres for the entire

segment (TRUCK LCV PCR FARMS OTR)

20

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 5: Marketing Strategy Opted by the Apollo Tyres1

TOPIC CONTENT

INTRODUCTION 1

COMPANY PROFILE25

LITERATURE REVIEW41

RESEARCH METHODOLOGY57

FINDING AND ANALYSIS59

CONCLUSION71

RECOMMENDATION73

BIBLIOGRAPHY75

ANNEXURE ndash QUESTIONNAIRE76

4

INTRODUCTION

INDUSTRY ANALYSIS

Over a period of more than two decades the Indian Automobile Industry has

been driving its own growth through phases The entry of Suzuki Corporation

in Indian passenger car manufacturing is often pointed as the first sign of

India turning to a market economy Since then the automobile sector

witnessed rapid growth year after year By late-90s the industry reached self

reliance in engine and component manufacturing from the status of large

scale importer

With comparatively higher rate of economic growth rate index against that of

great global powers India has become a hub of domestic and exports

business

The automobile sector has been contributing its share to the shining economic

performance of India in the recent years With the Indian middle class earning

higher per capita income more people are ready to own private vehicles

including cars and two-wheelers Product movements and manned services

have boosted in the sales of medium and sized commercial vehicles for

passenger and goods transport

The data obtained from Ministry of Commerce and Industry shows high

growth obtained since 2001-02 in automobile production continuing in the first

three quarters of the 2004-05 Annual growth was 160 per cent in April-

December 2004 the growth rate in 2003-04 was 151 per cent The

automobile industry grew at a compound annual growth rate (CAGR) of 22

per cent between 1992 and 1997

With investment exceeding Rs 50000 crore the turnover of the automobile

industry exceeded Rs 59518 crore in 2002-03 Including turnover of the

auto-component sector the automotive industrys turnover which was above

Rs 84000 crore in 2002-03 is estimated to have exceeded Rs100000

crore ( USD 22 74 billion) in 2003-04

Automobile Dealers Network in India

5

In terms of Car dealer networks and authorized service stations Maruti leads

the pack with Dealer networks and workshops across the country The other

leading automobile manufacturers are also trying to cope up and are opening

their service stations and dealer workshops in all the metros and major cities

of the country Dealers offer varying kind of discount of finances who in tern

pass it on to the customers in the form of reduced interest rates

Major Manufacturers in Automobile Industry

Maruti Udyog Ltd

General Motors India

Ford India Ltd

Eicher Motors

Bajaj Auto

Daewoo Motors India

Hero Motors

Hindustan Motors

Hyundai Motor India Ltd

Royal Enfield Motors

Telco

TVS Motors

DC Designs

Swaraj Mazda Ltd

6

Major Players in Tyre Industry

MRF

A leading company in the tyre industry MRF Ltd boasts of an enviable track

record The company has continued in the same vein and has been posting

excellent results notwithstanding the winds of recession blowing across the

economy Performance of the company has been commendable in light of the

fact that the user industry is facing a slowdown The company has benefited

from better productivity and operational efficiency The company caters to a

host of impressive clients It has signed on to be the sole supplier for auto

giants like General Motors Fiat and Ford in India The company is also

renowned for its exports which have also been witnessing positive growth

The company has recently entered the radial tyre segment and has met with

positive response The performance of the company could further improve

with the revival of the auto industry Thus MRF Ltd can be expected to retain

its position in this segment However investors can move out of the scrip

considering the outlook for the industry as a whole

CEAT

Being the second largest selling brand in India with a market share of 146 per

cent Ceat caters primarily to the replacement market Due to the strong

growth in the OEM sector the share of the replacement market in the total

revenue of the company has fallen However the production growth in the

automobile sector over the past few years should provide a boost to the

replacement market in the coming years and Ceat could be a major

beneficiary thereof With the advent of multinationals like Goodyear Michelin

Bridgestone and Continental a major shakeout in the industry is imminent

and the same could result in Ceat which is already operating on thin margins

being hived off as a joint venture with Goodyear in collaboration with which

Ceat has already promoted South Asia Tyres for manufacturing radial tyres in

India With a modest track record on the financial front the forthcoming

results may not be encouraging

7

Apollo Tyres Limited

A slow-down in the tyre market and rubber procurement at high prices has put

the brakes on Apollo Tyres Limited (ATL) The company has traditionally been

the market leader in the truck and bus tyres segments ATL caters to the

replacement segment of the domestic market Following its take over of

Premier Tyres ATLs market share has risen Besides the core truck and bus

tyre business fairly considerable part of its turnover comes from automotive

tubes and flaps for which it has commissioned a plant in Pune Despite a

reversal in the fortune of the automobile industry the chief user base of the

companyrsquos products the demand for truck tyres particularly in the

replacement market was not encouraging Even as tyre producers grapple

with over-capacity and high levels of inventory the government stirred a

hornetrsquos nest by proposing free imports of used and second-hand tyres ATL

has conversion agreements for small tyres with TCIL Stallino Tyres and

Rado Its exports are routed through Apollo International to the US Germany

Brazil Sudan Egypt etc A well-entrenched posend this article to a

friendsition in the replacement market favours ATL and the declining price

trend of key inputs like natural rubber and carbon black may provide relief to

its wafer-thin margins At the current price level the scrip has emerged as

an attractive buy thus accumulate its shares in small lots

Tyres for 2007-08 2008-09 Change

Truck amp Bus 13137 12839 (-)2

Passenger Car 16437 16570 1

Jeep 1467 1469 02

Light Commercial Vehicle 5320 5298 (-)04

Tractor Front 1814 1842 2

Tractor Rear 1234 1315 7

8

Tractor Trailer 886 758 (-)14

Animal Drawn Vehicle 409 281 (-)31

Scooter Moped 11604 10883 (-)6

Motor Cycle 27921 30148 8

Industrial 733 568 (-)23

Off the Road (OTR) 141 136 (-)4

Total 81103 82107 1

Apollo Tyres Ltd is considering building a greenfield tyre plant in south India It

is looking at Tamil Nadu and Andhra Pradesh as options According to Onkar

S Kanwar Apollos vice chairman and managing director The project outlay

will be around Rs 300 crore and the plant capacity will be 100 tonnes per

day The project will be funded out of internal accruals and term loans

Kanwar rules out any equity infusion It may be recalled that Apollo Tyres

recently issued partly convertible debentures to the promoters

According to Mr Kanwar the proposed facility will roll out truck and bus (radial

and bial) and earthmoving equipment tyres Further if negotiations with

Hyundai Motors (India) Ltd for original equipment supplies succeed the plant

will also roll out car radials The new investment is part of the Rs 400 crore

investment announced by the company recently The company commissioned

its Rs 80 crore 1 lakh tyres per annum capacity car radial tyres plant at

Baroda this January

For Apollo Tyres a plant in Chennai makes economic sense The company

would be able to cut freight costs while supplying to Ashok Leyland (truck

tyres) Tafe (tractor rear tyres) and Hindustan Motors Ltd for its earthmoving

equipment -- all of whom are located in and around Chennai -- and also for

catering to the southern replacement market Currently Apollo Tyres has two

9

facilities in Kerala from where the southern demand is met The south

accounts for 15-18 per cent of the countrys total truck tyre market according

to Mr Kanwar

The peaceful labour environment in Tamil Nadu would help Apollo Tyres The

company has had serious labour problems at its plants The company can

control costs better with its own new facility -- it is currently outsourcing a

sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars

Stallion And since Chennai is a port city exports too will become

competitive

Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo

Tyres We are studying the economics - incentives sales tax exemptions

etc - of locating the unit in Chennai and Andhra Pradesh The new facility

wherever it may come up will boost Apollo Tyres capacity from the current

levels of 244 million tyres annually

In the meanwhile Apollo Tyres talks with Continental AG remain

inconclusive When asked about these negotiations which could result in the

German company taking a 15 per cent stake in the Indian tyre makers equity

Onkar S Kanwar says The final decision will be taken in three months

The Rs 8500 crore Indian tyre industry has attracted substantial foreign

interest Global majors such as Bridgestone and Michelin have already

invested in Indian production facilities Korean tyres are being imported An

equity partnership with Continental will enable Apollo Tyres to access

advanced technology All the global tyre giants spend huge sums in RampD

efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This

effort is focussed on the study of use of different types of rubber chords and

chemicals in tyre manufacture according to Neeraj KanwarThe problem

Continental is also talking to two other Indian companies - JK Tyres and Modi

Rubber -with both of whom it has technical collaboration

A marginal player in the tyre industry a decade ago Apollo Tyres leads the

replacement market in the heavy vehicle and car radials segments It has

achieved this through acquisitions and contract manufacturing One of the

10

reasons for Apollo Tyres going in for a greenfield project is its confidence to

expand its market share The focus is to increase our market share to 25 per

cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says

Bus and truck tyres account for a lions share of the industrys revenues

Since the OE market is margin-sensitive all the action is focussed on the

lucrative replacement market especially in the heavy vehicles segment

According to Satish Sharma product manager at Apollo Tyres The size of

the truck tyre replacement market is 4 lakh tyres per month and our share in

that is 25 per cent

Though the volume will be small talks have been initiated with Volvo India

Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run

for its money Its Apollo Excel tyres rolled out from its Baroda plant have

received an excellent response in the marketplace according to the company

In the OE segment MRF has been losing its hold to Bridgestone And in the

replacement market Apollo Tyres has become a major threat Apollo Tyres is

now negotiating with Hyundai Motors and Hindustan Motors for OE sales The

Kanwars want to reach top spot in the light commercial vehicles segment by

March 2001 In the two wheeler market Apollo is focussing on the motorcycle

tyres market

To boost sales Apollo Tyres has tied up with Castrol India and Kotak

Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve

their earnings The tie-up with Kotak Mahindra will facilitate sales by providing

finance for tyre purchases for the first time in India Apollo Tyres has

increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to

push sales

With all car makers planning to expand capacities the car radial market is

expected to expand rapidly According to the Apollo management the

company sells 11 lakh of the 5 lakh car radials sold per month in India today

At present the companys tyres are fitted as OE in Hindustan Motors

Ambassador and Contessa models in tractors from Tafe Punjab Tractors

and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco

11

Industry was on a smooth ride till FY08 The industry tonnage production

registered a 5-year Compounded Annual Growth Rate (CAGR) of 802

between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded

a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle

and car tyre categories grew at 1334 1227 and 1398 respectively in

this period

However as the economy in general and automobile industry in specific

slowed down in FY09 the tyre demand too came under pressure In the first

nine months of FY09 the industry managed a tonnage growth of only 219

against a growth of 738 in the same period last year The tyre offtake to the

Original Equipment Manufacturers (OEMs) declined by 617 during this

period The TampB tyre category was the worst affected with the total offtake of

these tyres declining by 001 in the first nine months Also in the face of

global slowdown and stiff Chinese competition the export market offtake

declined by 982 during this period

On the face of these demand-side pressures the tyre industry saw production

adjustments from all the major players in the last couple of months The

government too tried to provide external stimulus by effecting 6 excise duty

cut across industries (the excise duty for tyres was brought down from 14 to

10 wef December 7 2008 and then further reduced to 8 wef February

25 2009) In all the gloom one silver lining for the industry has been the

easing of the raw material prices from September 2008 onwards However

the impact of the fall in commodity prices was not visible in the nine months

results of the companies as the companies were laden with high-price

inventories The benefits of the sublime raw material prices will become

visible only in the last quarter of FY09 provided the demand too supports the

topline

The tyre industry faces competition from China in the domestic market

Imports as a percentage of total TampB tyre production stood at 10 in FY08

with more than 90 of these imports coming from China While the anti-

dumping duty is levied on the import of Chinese TampB bias tyres the industry

now wants it to be extended to Chinese TampB radial tyres to alleviate the

12

import threat In addition the industry is also keen on customs duty relief on

raw materials not producedmanufactured in the country so as to compete

with the Chinese tyres

Radialisation though in its infancy in TampB tyre category is making inroads

Most manufacturers have capex plans for radial TampB tyres with no new

capacity being added for bias tyres This indicates that the industry foresees

radialisation to take further hold in the TampB tyre category In the passenger

car segment radialisation has reached 97 up from 95 a year ago The

Industry is also banking on the customised Off The Road (OTR) tyres and

adding capacity in this category

The Indian manufacturers are looking at increasing their global footprints

Apollo is undertaking an expansion plan at its Dunlop plant in South Africa

Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It

has also entered into a manufacturing agreement with Chinese manufacturers

to sell JK-branded tyres in the export markets

13

COMPANY PROFILE

In todayrsquos world of intense competition and rapid dynamism all the companies

worldwide are tuning their focuses on the customer Suddenly the customer

had succeeded in capturing all the attention of the companies towards him so

much so that the once famous maxim ldquocustomer is the godrdquo has become so

true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of

these companies and none other then the customer has brought this about

Earlier there was a sellers market since goods and services were in short

supply and the sellers use to call the shots But ever since the advent of the

era of globalization there has been total transformation in the way the

customers being perceived Today marketers are directing their efforts in

retaining the customers and customersrsquo base Their focus has shifted towards

integrating the three elements people service and marketing

The customerrsquos importance has assumed imponderable proportions in todayrsquos

world because of the inherent value that the customers command A

customers can ldquomake or breakrdquo a company It is the responsibility of every

company to see that all its customers are equally satisfied with them for one

single dissatisfied customer will tell at least nine others about the

dissatisfaction and will spark off a chain reaction and spell doom for that

company In such scenario retention of the existing customers assumes

diabolical proportion Research has thrown light on some important aspects of

customersrsquo retention it has been proved empirically that acquiring new

customers can cost five times more than the cost involved in satisfying and

retaining current customers

In the past the customers was taken for a ride as there were not many

players in the fields not much importance was attached to product safety

quality service and product appeal The attitude of the manufacture was that

of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization

globalization and privatization (LPG) the market scenario has changed today

Today the customer has a host of defense mechanism like the customers

protection laws regulation of the government the powerful hands of the

14

organization customersrsquo courts switching to substitute or competitors that

offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been

replaced by ldquocaveat venditorrdquo

In the past after sales service was consider as a cost center Companies

were lethargic in attending to customers complaints Availability of trainee

service personal and quality genuine spare parts posed serious problems

However with the rising competition there could not be much product

differentiation as price and quality were comparable and latest technology

was to each and every company in the field Since there could not be much

differential a tangible assets the companies concentrated on the ldquointangible

assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator

Today after sales service is an important aspect of every company and it is

no more considered as a cost center but considered as a profit center Every

organization strives hard to retain its existing customers at any cost since it is

five times costly to get a new customers then to retain an existing customers

Today most of the industries use information technology to best services to

their customers

MARKETING STRATEGY

15

Strategic thinking is key to the evolution of successful marketing strategies

of APOLLO tyre This involves the following analyses

(a) Understanding markets Strategic perspective of the market requires skilful

analysis of the trend and how they affect the market size and demand for the firmrsquos

product

(b) Finding market niches Price service convenience and technology

are some of the niches in Indian market

(c) Product and service planning Analysis of the customerrsquos

promotion of the brand both of the firm and competitors besides an analysis

of the situation in which the customer uses the product

(i) Distribution Structural changes in inventory management mobile

distribution are some of the key factors that are going to affect the distribution

process in the Indian market

(ii) Managing for result With pressure on costs prices and margins

marketers will have to make effective utilization of every rupee spent in

marketing

Market opportunity of Apollo tyres-

Identification of market opportunity is critical before the management of

affirm takes a decision to launch or diversify in any product area This involves

analysis of the following

Size of the market

Marketing strategies and the extent and quality of services rendered by

other firm in the industry

Market programmed required to satisfy market wants

Identification of key success factors in an industry and linking them to a

16

firmrsquos strengths and weakness

Market opportunity

(a) Size of the market

(b) How well the market is served

(c) Prospective inches

(d) Marketing mix required to succeed

(e) Core competencies required

MARKETING MIX

A Marketing mix is the division of groups to make a particular product

by pricing product branding place and quality Although some

marketers[who] have added other Ps such as personnel and packaging the

fundamentals of marketing typically identifies the four Ps of the marketing mix

as referring to-

1 Product

2 Price

3 Promotion

4 Place

17

Product

A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units Intangible

products are often service based like the tourism industry amp the hotel industry

Typical examples of a mass produced tangible object are the tyre A less

obvious but ubiquitous mass produced service is a computer operating

system

18

Price

The price is the amount a customer pays for the product It is determined by a

number of factors including market share competition material costs product

identity and the customers perceived value of the product The business may

increase or decrease the price of product if other stores have the same

product

Place

Place represents the location where a product can be purchased It is often

referred to as the distribution channel It can include any physical store as well

as virtual stores on the Internet

Promotion

Promotion represents all of the communications that a marketer may

use in the marketplace Promotion has four distinct elements - advertising

public relations word of mouth and point of sale A certain amount of

crossover occurs when promotion uses the four principal elements together

which is common in film promotion Advertising covers any communication

that is paid for from television and cinema commercials radio and Internet

adverts through print media and billboards One of the most notable means of

19

promotion today is the Promotional Product as in useful items distributed to

targeted audiences with no obligation attached This category has grown each

year for the past decade while most other forms have suffered It is the only

form of advertising that targets all five senses and has the recipient thanking

the giver Public relations are where the communication is not directly paid for

and includes press releases sponsorship deals exhibitions conferences

seminars or trade fairs and events Word of mouth is any apparently informal

communication about the product by ordinary individuals satisfied customers

or people specifically engaged to create word of mouth momentum Sales

staff often plays an important role in word of mouth and Public Relations

Broadly defined optimizing the marketing mix is the primary responsibility of

marketing By offering the product with the right combination of the four Ps

marketers can improve their results and marketing effectiveness Making

small changes in the marketing mix is typically considered to be a tactical

change Making large changes in any of the four Ps can be considered

strategic For example a large change in the price say from $1900 to $3900

would be considered a strategic change in the position of the product

However a change of $131 to $13099 would be considered a tactical change

potentially related to a promotional offer

The term Marketing Mix however does not imply that the 4P elements

represent options They are not trade-offs but are fundamental marketing

issues that always need to be addressed They are the fundamental actions

that marketing requires whether determined explicitly or by default

Product Profile

The Apollo Tyres ltd Is leading company for all tyres-manufacturing company

in India and The Apollo Tyres Company manufacturing the tyres for the entire

segment (TRUCK LCV PCR FARMS OTR)

20

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 6: Marketing Strategy Opted by the Apollo Tyres1

INTRODUCTION

INDUSTRY ANALYSIS

Over a period of more than two decades the Indian Automobile Industry has

been driving its own growth through phases The entry of Suzuki Corporation

in Indian passenger car manufacturing is often pointed as the first sign of

India turning to a market economy Since then the automobile sector

witnessed rapid growth year after year By late-90s the industry reached self

reliance in engine and component manufacturing from the status of large

scale importer

With comparatively higher rate of economic growth rate index against that of

great global powers India has become a hub of domestic and exports

business

The automobile sector has been contributing its share to the shining economic

performance of India in the recent years With the Indian middle class earning

higher per capita income more people are ready to own private vehicles

including cars and two-wheelers Product movements and manned services

have boosted in the sales of medium and sized commercial vehicles for

passenger and goods transport

The data obtained from Ministry of Commerce and Industry shows high

growth obtained since 2001-02 in automobile production continuing in the first

three quarters of the 2004-05 Annual growth was 160 per cent in April-

December 2004 the growth rate in 2003-04 was 151 per cent The

automobile industry grew at a compound annual growth rate (CAGR) of 22

per cent between 1992 and 1997

With investment exceeding Rs 50000 crore the turnover of the automobile

industry exceeded Rs 59518 crore in 2002-03 Including turnover of the

auto-component sector the automotive industrys turnover which was above

Rs 84000 crore in 2002-03 is estimated to have exceeded Rs100000

crore ( USD 22 74 billion) in 2003-04

Automobile Dealers Network in India

5

In terms of Car dealer networks and authorized service stations Maruti leads

the pack with Dealer networks and workshops across the country The other

leading automobile manufacturers are also trying to cope up and are opening

their service stations and dealer workshops in all the metros and major cities

of the country Dealers offer varying kind of discount of finances who in tern

pass it on to the customers in the form of reduced interest rates

Major Manufacturers in Automobile Industry

Maruti Udyog Ltd

General Motors India

Ford India Ltd

Eicher Motors

Bajaj Auto

Daewoo Motors India

Hero Motors

Hindustan Motors

Hyundai Motor India Ltd

Royal Enfield Motors

Telco

TVS Motors

DC Designs

Swaraj Mazda Ltd

6

Major Players in Tyre Industry

MRF

A leading company in the tyre industry MRF Ltd boasts of an enviable track

record The company has continued in the same vein and has been posting

excellent results notwithstanding the winds of recession blowing across the

economy Performance of the company has been commendable in light of the

fact that the user industry is facing a slowdown The company has benefited

from better productivity and operational efficiency The company caters to a

host of impressive clients It has signed on to be the sole supplier for auto

giants like General Motors Fiat and Ford in India The company is also

renowned for its exports which have also been witnessing positive growth

The company has recently entered the radial tyre segment and has met with

positive response The performance of the company could further improve

with the revival of the auto industry Thus MRF Ltd can be expected to retain

its position in this segment However investors can move out of the scrip

considering the outlook for the industry as a whole

CEAT

Being the second largest selling brand in India with a market share of 146 per

cent Ceat caters primarily to the replacement market Due to the strong

growth in the OEM sector the share of the replacement market in the total

revenue of the company has fallen However the production growth in the

automobile sector over the past few years should provide a boost to the

replacement market in the coming years and Ceat could be a major

beneficiary thereof With the advent of multinationals like Goodyear Michelin

Bridgestone and Continental a major shakeout in the industry is imminent

and the same could result in Ceat which is already operating on thin margins

being hived off as a joint venture with Goodyear in collaboration with which

Ceat has already promoted South Asia Tyres for manufacturing radial tyres in

India With a modest track record on the financial front the forthcoming

results may not be encouraging

7

Apollo Tyres Limited

A slow-down in the tyre market and rubber procurement at high prices has put

the brakes on Apollo Tyres Limited (ATL) The company has traditionally been

the market leader in the truck and bus tyres segments ATL caters to the

replacement segment of the domestic market Following its take over of

Premier Tyres ATLs market share has risen Besides the core truck and bus

tyre business fairly considerable part of its turnover comes from automotive

tubes and flaps for which it has commissioned a plant in Pune Despite a

reversal in the fortune of the automobile industry the chief user base of the

companyrsquos products the demand for truck tyres particularly in the

replacement market was not encouraging Even as tyre producers grapple

with over-capacity and high levels of inventory the government stirred a

hornetrsquos nest by proposing free imports of used and second-hand tyres ATL

has conversion agreements for small tyres with TCIL Stallino Tyres and

Rado Its exports are routed through Apollo International to the US Germany

Brazil Sudan Egypt etc A well-entrenched posend this article to a

friendsition in the replacement market favours ATL and the declining price

trend of key inputs like natural rubber and carbon black may provide relief to

its wafer-thin margins At the current price level the scrip has emerged as

an attractive buy thus accumulate its shares in small lots

Tyres for 2007-08 2008-09 Change

Truck amp Bus 13137 12839 (-)2

Passenger Car 16437 16570 1

Jeep 1467 1469 02

Light Commercial Vehicle 5320 5298 (-)04

Tractor Front 1814 1842 2

Tractor Rear 1234 1315 7

8

Tractor Trailer 886 758 (-)14

Animal Drawn Vehicle 409 281 (-)31

Scooter Moped 11604 10883 (-)6

Motor Cycle 27921 30148 8

Industrial 733 568 (-)23

Off the Road (OTR) 141 136 (-)4

Total 81103 82107 1

Apollo Tyres Ltd is considering building a greenfield tyre plant in south India It

is looking at Tamil Nadu and Andhra Pradesh as options According to Onkar

S Kanwar Apollos vice chairman and managing director The project outlay

will be around Rs 300 crore and the plant capacity will be 100 tonnes per

day The project will be funded out of internal accruals and term loans

Kanwar rules out any equity infusion It may be recalled that Apollo Tyres

recently issued partly convertible debentures to the promoters

According to Mr Kanwar the proposed facility will roll out truck and bus (radial

and bial) and earthmoving equipment tyres Further if negotiations with

Hyundai Motors (India) Ltd for original equipment supplies succeed the plant

will also roll out car radials The new investment is part of the Rs 400 crore

investment announced by the company recently The company commissioned

its Rs 80 crore 1 lakh tyres per annum capacity car radial tyres plant at

Baroda this January

For Apollo Tyres a plant in Chennai makes economic sense The company

would be able to cut freight costs while supplying to Ashok Leyland (truck

tyres) Tafe (tractor rear tyres) and Hindustan Motors Ltd for its earthmoving

equipment -- all of whom are located in and around Chennai -- and also for

catering to the southern replacement market Currently Apollo Tyres has two

9

facilities in Kerala from where the southern demand is met The south

accounts for 15-18 per cent of the countrys total truck tyre market according

to Mr Kanwar

The peaceful labour environment in Tamil Nadu would help Apollo Tyres The

company has had serious labour problems at its plants The company can

control costs better with its own new facility -- it is currently outsourcing a

sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars

Stallion And since Chennai is a port city exports too will become

competitive

Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo

Tyres We are studying the economics - incentives sales tax exemptions

etc - of locating the unit in Chennai and Andhra Pradesh The new facility

wherever it may come up will boost Apollo Tyres capacity from the current

levels of 244 million tyres annually

In the meanwhile Apollo Tyres talks with Continental AG remain

inconclusive When asked about these negotiations which could result in the

German company taking a 15 per cent stake in the Indian tyre makers equity

Onkar S Kanwar says The final decision will be taken in three months

The Rs 8500 crore Indian tyre industry has attracted substantial foreign

interest Global majors such as Bridgestone and Michelin have already

invested in Indian production facilities Korean tyres are being imported An

equity partnership with Continental will enable Apollo Tyres to access

advanced technology All the global tyre giants spend huge sums in RampD

efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This

effort is focussed on the study of use of different types of rubber chords and

chemicals in tyre manufacture according to Neeraj KanwarThe problem

Continental is also talking to two other Indian companies - JK Tyres and Modi

Rubber -with both of whom it has technical collaboration

A marginal player in the tyre industry a decade ago Apollo Tyres leads the

replacement market in the heavy vehicle and car radials segments It has

achieved this through acquisitions and contract manufacturing One of the

10

reasons for Apollo Tyres going in for a greenfield project is its confidence to

expand its market share The focus is to increase our market share to 25 per

cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says

Bus and truck tyres account for a lions share of the industrys revenues

Since the OE market is margin-sensitive all the action is focussed on the

lucrative replacement market especially in the heavy vehicles segment

According to Satish Sharma product manager at Apollo Tyres The size of

the truck tyre replacement market is 4 lakh tyres per month and our share in

that is 25 per cent

Though the volume will be small talks have been initiated with Volvo India

Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run

for its money Its Apollo Excel tyres rolled out from its Baroda plant have

received an excellent response in the marketplace according to the company

In the OE segment MRF has been losing its hold to Bridgestone And in the

replacement market Apollo Tyres has become a major threat Apollo Tyres is

now negotiating with Hyundai Motors and Hindustan Motors for OE sales The

Kanwars want to reach top spot in the light commercial vehicles segment by

March 2001 In the two wheeler market Apollo is focussing on the motorcycle

tyres market

To boost sales Apollo Tyres has tied up with Castrol India and Kotak

Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve

their earnings The tie-up with Kotak Mahindra will facilitate sales by providing

finance for tyre purchases for the first time in India Apollo Tyres has

increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to

push sales

With all car makers planning to expand capacities the car radial market is

expected to expand rapidly According to the Apollo management the

company sells 11 lakh of the 5 lakh car radials sold per month in India today

At present the companys tyres are fitted as OE in Hindustan Motors

Ambassador and Contessa models in tractors from Tafe Punjab Tractors

and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco

11

Industry was on a smooth ride till FY08 The industry tonnage production

registered a 5-year Compounded Annual Growth Rate (CAGR) of 802

between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded

a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle

and car tyre categories grew at 1334 1227 and 1398 respectively in

this period

However as the economy in general and automobile industry in specific

slowed down in FY09 the tyre demand too came under pressure In the first

nine months of FY09 the industry managed a tonnage growth of only 219

against a growth of 738 in the same period last year The tyre offtake to the

Original Equipment Manufacturers (OEMs) declined by 617 during this

period The TampB tyre category was the worst affected with the total offtake of

these tyres declining by 001 in the first nine months Also in the face of

global slowdown and stiff Chinese competition the export market offtake

declined by 982 during this period

On the face of these demand-side pressures the tyre industry saw production

adjustments from all the major players in the last couple of months The

government too tried to provide external stimulus by effecting 6 excise duty

cut across industries (the excise duty for tyres was brought down from 14 to

10 wef December 7 2008 and then further reduced to 8 wef February

25 2009) In all the gloom one silver lining for the industry has been the

easing of the raw material prices from September 2008 onwards However

the impact of the fall in commodity prices was not visible in the nine months

results of the companies as the companies were laden with high-price

inventories The benefits of the sublime raw material prices will become

visible only in the last quarter of FY09 provided the demand too supports the

topline

The tyre industry faces competition from China in the domestic market

Imports as a percentage of total TampB tyre production stood at 10 in FY08

with more than 90 of these imports coming from China While the anti-

dumping duty is levied on the import of Chinese TampB bias tyres the industry

now wants it to be extended to Chinese TampB radial tyres to alleviate the

12

import threat In addition the industry is also keen on customs duty relief on

raw materials not producedmanufactured in the country so as to compete

with the Chinese tyres

Radialisation though in its infancy in TampB tyre category is making inroads

Most manufacturers have capex plans for radial TampB tyres with no new

capacity being added for bias tyres This indicates that the industry foresees

radialisation to take further hold in the TampB tyre category In the passenger

car segment radialisation has reached 97 up from 95 a year ago The

Industry is also banking on the customised Off The Road (OTR) tyres and

adding capacity in this category

The Indian manufacturers are looking at increasing their global footprints

Apollo is undertaking an expansion plan at its Dunlop plant in South Africa

Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It

has also entered into a manufacturing agreement with Chinese manufacturers

to sell JK-branded tyres in the export markets

13

COMPANY PROFILE

In todayrsquos world of intense competition and rapid dynamism all the companies

worldwide are tuning their focuses on the customer Suddenly the customer

had succeeded in capturing all the attention of the companies towards him so

much so that the once famous maxim ldquocustomer is the godrdquo has become so

true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of

these companies and none other then the customer has brought this about

Earlier there was a sellers market since goods and services were in short

supply and the sellers use to call the shots But ever since the advent of the

era of globalization there has been total transformation in the way the

customers being perceived Today marketers are directing their efforts in

retaining the customers and customersrsquo base Their focus has shifted towards

integrating the three elements people service and marketing

The customerrsquos importance has assumed imponderable proportions in todayrsquos

world because of the inherent value that the customers command A

customers can ldquomake or breakrdquo a company It is the responsibility of every

company to see that all its customers are equally satisfied with them for one

single dissatisfied customer will tell at least nine others about the

dissatisfaction and will spark off a chain reaction and spell doom for that

company In such scenario retention of the existing customers assumes

diabolical proportion Research has thrown light on some important aspects of

customersrsquo retention it has been proved empirically that acquiring new

customers can cost five times more than the cost involved in satisfying and

retaining current customers

In the past the customers was taken for a ride as there were not many

players in the fields not much importance was attached to product safety

quality service and product appeal The attitude of the manufacture was that

of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization

globalization and privatization (LPG) the market scenario has changed today

Today the customer has a host of defense mechanism like the customers

protection laws regulation of the government the powerful hands of the

14

organization customersrsquo courts switching to substitute or competitors that

offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been

replaced by ldquocaveat venditorrdquo

In the past after sales service was consider as a cost center Companies

were lethargic in attending to customers complaints Availability of trainee

service personal and quality genuine spare parts posed serious problems

However with the rising competition there could not be much product

differentiation as price and quality were comparable and latest technology

was to each and every company in the field Since there could not be much

differential a tangible assets the companies concentrated on the ldquointangible

assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator

Today after sales service is an important aspect of every company and it is

no more considered as a cost center but considered as a profit center Every

organization strives hard to retain its existing customers at any cost since it is

five times costly to get a new customers then to retain an existing customers

Today most of the industries use information technology to best services to

their customers

MARKETING STRATEGY

15

Strategic thinking is key to the evolution of successful marketing strategies

of APOLLO tyre This involves the following analyses

(a) Understanding markets Strategic perspective of the market requires skilful

analysis of the trend and how they affect the market size and demand for the firmrsquos

product

(b) Finding market niches Price service convenience and technology

are some of the niches in Indian market

(c) Product and service planning Analysis of the customerrsquos

promotion of the brand both of the firm and competitors besides an analysis

of the situation in which the customer uses the product

(i) Distribution Structural changes in inventory management mobile

distribution are some of the key factors that are going to affect the distribution

process in the Indian market

(ii) Managing for result With pressure on costs prices and margins

marketers will have to make effective utilization of every rupee spent in

marketing

Market opportunity of Apollo tyres-

Identification of market opportunity is critical before the management of

affirm takes a decision to launch or diversify in any product area This involves

analysis of the following

Size of the market

Marketing strategies and the extent and quality of services rendered by

other firm in the industry

Market programmed required to satisfy market wants

Identification of key success factors in an industry and linking them to a

16

firmrsquos strengths and weakness

Market opportunity

(a) Size of the market

(b) How well the market is served

(c) Prospective inches

(d) Marketing mix required to succeed

(e) Core competencies required

MARKETING MIX

A Marketing mix is the division of groups to make a particular product

by pricing product branding place and quality Although some

marketers[who] have added other Ps such as personnel and packaging the

fundamentals of marketing typically identifies the four Ps of the marketing mix

as referring to-

1 Product

2 Price

3 Promotion

4 Place

17

Product

A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units Intangible

products are often service based like the tourism industry amp the hotel industry

Typical examples of a mass produced tangible object are the tyre A less

obvious but ubiquitous mass produced service is a computer operating

system

18

Price

The price is the amount a customer pays for the product It is determined by a

number of factors including market share competition material costs product

identity and the customers perceived value of the product The business may

increase or decrease the price of product if other stores have the same

product

Place

Place represents the location where a product can be purchased It is often

referred to as the distribution channel It can include any physical store as well

as virtual stores on the Internet

Promotion

Promotion represents all of the communications that a marketer may

use in the marketplace Promotion has four distinct elements - advertising

public relations word of mouth and point of sale A certain amount of

crossover occurs when promotion uses the four principal elements together

which is common in film promotion Advertising covers any communication

that is paid for from television and cinema commercials radio and Internet

adverts through print media and billboards One of the most notable means of

19

promotion today is the Promotional Product as in useful items distributed to

targeted audiences with no obligation attached This category has grown each

year for the past decade while most other forms have suffered It is the only

form of advertising that targets all five senses and has the recipient thanking

the giver Public relations are where the communication is not directly paid for

and includes press releases sponsorship deals exhibitions conferences

seminars or trade fairs and events Word of mouth is any apparently informal

communication about the product by ordinary individuals satisfied customers

or people specifically engaged to create word of mouth momentum Sales

staff often plays an important role in word of mouth and Public Relations

Broadly defined optimizing the marketing mix is the primary responsibility of

marketing By offering the product with the right combination of the four Ps

marketers can improve their results and marketing effectiveness Making

small changes in the marketing mix is typically considered to be a tactical

change Making large changes in any of the four Ps can be considered

strategic For example a large change in the price say from $1900 to $3900

would be considered a strategic change in the position of the product

However a change of $131 to $13099 would be considered a tactical change

potentially related to a promotional offer

The term Marketing Mix however does not imply that the 4P elements

represent options They are not trade-offs but are fundamental marketing

issues that always need to be addressed They are the fundamental actions

that marketing requires whether determined explicitly or by default

Product Profile

The Apollo Tyres ltd Is leading company for all tyres-manufacturing company

in India and The Apollo Tyres Company manufacturing the tyres for the entire

segment (TRUCK LCV PCR FARMS OTR)

20

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 7: Marketing Strategy Opted by the Apollo Tyres1

In terms of Car dealer networks and authorized service stations Maruti leads

the pack with Dealer networks and workshops across the country The other

leading automobile manufacturers are also trying to cope up and are opening

their service stations and dealer workshops in all the metros and major cities

of the country Dealers offer varying kind of discount of finances who in tern

pass it on to the customers in the form of reduced interest rates

Major Manufacturers in Automobile Industry

Maruti Udyog Ltd

General Motors India

Ford India Ltd

Eicher Motors

Bajaj Auto

Daewoo Motors India

Hero Motors

Hindustan Motors

Hyundai Motor India Ltd

Royal Enfield Motors

Telco

TVS Motors

DC Designs

Swaraj Mazda Ltd

6

Major Players in Tyre Industry

MRF

A leading company in the tyre industry MRF Ltd boasts of an enviable track

record The company has continued in the same vein and has been posting

excellent results notwithstanding the winds of recession blowing across the

economy Performance of the company has been commendable in light of the

fact that the user industry is facing a slowdown The company has benefited

from better productivity and operational efficiency The company caters to a

host of impressive clients It has signed on to be the sole supplier for auto

giants like General Motors Fiat and Ford in India The company is also

renowned for its exports which have also been witnessing positive growth

The company has recently entered the radial tyre segment and has met with

positive response The performance of the company could further improve

with the revival of the auto industry Thus MRF Ltd can be expected to retain

its position in this segment However investors can move out of the scrip

considering the outlook for the industry as a whole

CEAT

Being the second largest selling brand in India with a market share of 146 per

cent Ceat caters primarily to the replacement market Due to the strong

growth in the OEM sector the share of the replacement market in the total

revenue of the company has fallen However the production growth in the

automobile sector over the past few years should provide a boost to the

replacement market in the coming years and Ceat could be a major

beneficiary thereof With the advent of multinationals like Goodyear Michelin

Bridgestone and Continental a major shakeout in the industry is imminent

and the same could result in Ceat which is already operating on thin margins

being hived off as a joint venture with Goodyear in collaboration with which

Ceat has already promoted South Asia Tyres for manufacturing radial tyres in

India With a modest track record on the financial front the forthcoming

results may not be encouraging

7

Apollo Tyres Limited

A slow-down in the tyre market and rubber procurement at high prices has put

the brakes on Apollo Tyres Limited (ATL) The company has traditionally been

the market leader in the truck and bus tyres segments ATL caters to the

replacement segment of the domestic market Following its take over of

Premier Tyres ATLs market share has risen Besides the core truck and bus

tyre business fairly considerable part of its turnover comes from automotive

tubes and flaps for which it has commissioned a plant in Pune Despite a

reversal in the fortune of the automobile industry the chief user base of the

companyrsquos products the demand for truck tyres particularly in the

replacement market was not encouraging Even as tyre producers grapple

with over-capacity and high levels of inventory the government stirred a

hornetrsquos nest by proposing free imports of used and second-hand tyres ATL

has conversion agreements for small tyres with TCIL Stallino Tyres and

Rado Its exports are routed through Apollo International to the US Germany

Brazil Sudan Egypt etc A well-entrenched posend this article to a

friendsition in the replacement market favours ATL and the declining price

trend of key inputs like natural rubber and carbon black may provide relief to

its wafer-thin margins At the current price level the scrip has emerged as

an attractive buy thus accumulate its shares in small lots

Tyres for 2007-08 2008-09 Change

Truck amp Bus 13137 12839 (-)2

Passenger Car 16437 16570 1

Jeep 1467 1469 02

Light Commercial Vehicle 5320 5298 (-)04

Tractor Front 1814 1842 2

Tractor Rear 1234 1315 7

8

Tractor Trailer 886 758 (-)14

Animal Drawn Vehicle 409 281 (-)31

Scooter Moped 11604 10883 (-)6

Motor Cycle 27921 30148 8

Industrial 733 568 (-)23

Off the Road (OTR) 141 136 (-)4

Total 81103 82107 1

Apollo Tyres Ltd is considering building a greenfield tyre plant in south India It

is looking at Tamil Nadu and Andhra Pradesh as options According to Onkar

S Kanwar Apollos vice chairman and managing director The project outlay

will be around Rs 300 crore and the plant capacity will be 100 tonnes per

day The project will be funded out of internal accruals and term loans

Kanwar rules out any equity infusion It may be recalled that Apollo Tyres

recently issued partly convertible debentures to the promoters

According to Mr Kanwar the proposed facility will roll out truck and bus (radial

and bial) and earthmoving equipment tyres Further if negotiations with

Hyundai Motors (India) Ltd for original equipment supplies succeed the plant

will also roll out car radials The new investment is part of the Rs 400 crore

investment announced by the company recently The company commissioned

its Rs 80 crore 1 lakh tyres per annum capacity car radial tyres plant at

Baroda this January

For Apollo Tyres a plant in Chennai makes economic sense The company

would be able to cut freight costs while supplying to Ashok Leyland (truck

tyres) Tafe (tractor rear tyres) and Hindustan Motors Ltd for its earthmoving

equipment -- all of whom are located in and around Chennai -- and also for

catering to the southern replacement market Currently Apollo Tyres has two

9

facilities in Kerala from where the southern demand is met The south

accounts for 15-18 per cent of the countrys total truck tyre market according

to Mr Kanwar

The peaceful labour environment in Tamil Nadu would help Apollo Tyres The

company has had serious labour problems at its plants The company can

control costs better with its own new facility -- it is currently outsourcing a

sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars

Stallion And since Chennai is a port city exports too will become

competitive

Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo

Tyres We are studying the economics - incentives sales tax exemptions

etc - of locating the unit in Chennai and Andhra Pradesh The new facility

wherever it may come up will boost Apollo Tyres capacity from the current

levels of 244 million tyres annually

In the meanwhile Apollo Tyres talks with Continental AG remain

inconclusive When asked about these negotiations which could result in the

German company taking a 15 per cent stake in the Indian tyre makers equity

Onkar S Kanwar says The final decision will be taken in three months

The Rs 8500 crore Indian tyre industry has attracted substantial foreign

interest Global majors such as Bridgestone and Michelin have already

invested in Indian production facilities Korean tyres are being imported An

equity partnership with Continental will enable Apollo Tyres to access

advanced technology All the global tyre giants spend huge sums in RampD

efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This

effort is focussed on the study of use of different types of rubber chords and

chemicals in tyre manufacture according to Neeraj KanwarThe problem

Continental is also talking to two other Indian companies - JK Tyres and Modi

Rubber -with both of whom it has technical collaboration

A marginal player in the tyre industry a decade ago Apollo Tyres leads the

replacement market in the heavy vehicle and car radials segments It has

achieved this through acquisitions and contract manufacturing One of the

10

reasons for Apollo Tyres going in for a greenfield project is its confidence to

expand its market share The focus is to increase our market share to 25 per

cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says

Bus and truck tyres account for a lions share of the industrys revenues

Since the OE market is margin-sensitive all the action is focussed on the

lucrative replacement market especially in the heavy vehicles segment

According to Satish Sharma product manager at Apollo Tyres The size of

the truck tyre replacement market is 4 lakh tyres per month and our share in

that is 25 per cent

Though the volume will be small talks have been initiated with Volvo India

Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run

for its money Its Apollo Excel tyres rolled out from its Baroda plant have

received an excellent response in the marketplace according to the company

In the OE segment MRF has been losing its hold to Bridgestone And in the

replacement market Apollo Tyres has become a major threat Apollo Tyres is

now negotiating with Hyundai Motors and Hindustan Motors for OE sales The

Kanwars want to reach top spot in the light commercial vehicles segment by

March 2001 In the two wheeler market Apollo is focussing on the motorcycle

tyres market

To boost sales Apollo Tyres has tied up with Castrol India and Kotak

Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve

their earnings The tie-up with Kotak Mahindra will facilitate sales by providing

finance for tyre purchases for the first time in India Apollo Tyres has

increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to

push sales

With all car makers planning to expand capacities the car radial market is

expected to expand rapidly According to the Apollo management the

company sells 11 lakh of the 5 lakh car radials sold per month in India today

At present the companys tyres are fitted as OE in Hindustan Motors

Ambassador and Contessa models in tractors from Tafe Punjab Tractors

and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco

11

Industry was on a smooth ride till FY08 The industry tonnage production

registered a 5-year Compounded Annual Growth Rate (CAGR) of 802

between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded

a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle

and car tyre categories grew at 1334 1227 and 1398 respectively in

this period

However as the economy in general and automobile industry in specific

slowed down in FY09 the tyre demand too came under pressure In the first

nine months of FY09 the industry managed a tonnage growth of only 219

against a growth of 738 in the same period last year The tyre offtake to the

Original Equipment Manufacturers (OEMs) declined by 617 during this

period The TampB tyre category was the worst affected with the total offtake of

these tyres declining by 001 in the first nine months Also in the face of

global slowdown and stiff Chinese competition the export market offtake

declined by 982 during this period

On the face of these demand-side pressures the tyre industry saw production

adjustments from all the major players in the last couple of months The

government too tried to provide external stimulus by effecting 6 excise duty

cut across industries (the excise duty for tyres was brought down from 14 to

10 wef December 7 2008 and then further reduced to 8 wef February

25 2009) In all the gloom one silver lining for the industry has been the

easing of the raw material prices from September 2008 onwards However

the impact of the fall in commodity prices was not visible in the nine months

results of the companies as the companies were laden with high-price

inventories The benefits of the sublime raw material prices will become

visible only in the last quarter of FY09 provided the demand too supports the

topline

The tyre industry faces competition from China in the domestic market

Imports as a percentage of total TampB tyre production stood at 10 in FY08

with more than 90 of these imports coming from China While the anti-

dumping duty is levied on the import of Chinese TampB bias tyres the industry

now wants it to be extended to Chinese TampB radial tyres to alleviate the

12

import threat In addition the industry is also keen on customs duty relief on

raw materials not producedmanufactured in the country so as to compete

with the Chinese tyres

Radialisation though in its infancy in TampB tyre category is making inroads

Most manufacturers have capex plans for radial TampB tyres with no new

capacity being added for bias tyres This indicates that the industry foresees

radialisation to take further hold in the TampB tyre category In the passenger

car segment radialisation has reached 97 up from 95 a year ago The

Industry is also banking on the customised Off The Road (OTR) tyres and

adding capacity in this category

The Indian manufacturers are looking at increasing their global footprints

Apollo is undertaking an expansion plan at its Dunlop plant in South Africa

Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It

has also entered into a manufacturing agreement with Chinese manufacturers

to sell JK-branded tyres in the export markets

13

COMPANY PROFILE

In todayrsquos world of intense competition and rapid dynamism all the companies

worldwide are tuning their focuses on the customer Suddenly the customer

had succeeded in capturing all the attention of the companies towards him so

much so that the once famous maxim ldquocustomer is the godrdquo has become so

true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of

these companies and none other then the customer has brought this about

Earlier there was a sellers market since goods and services were in short

supply and the sellers use to call the shots But ever since the advent of the

era of globalization there has been total transformation in the way the

customers being perceived Today marketers are directing their efforts in

retaining the customers and customersrsquo base Their focus has shifted towards

integrating the three elements people service and marketing

The customerrsquos importance has assumed imponderable proportions in todayrsquos

world because of the inherent value that the customers command A

customers can ldquomake or breakrdquo a company It is the responsibility of every

company to see that all its customers are equally satisfied with them for one

single dissatisfied customer will tell at least nine others about the

dissatisfaction and will spark off a chain reaction and spell doom for that

company In such scenario retention of the existing customers assumes

diabolical proportion Research has thrown light on some important aspects of

customersrsquo retention it has been proved empirically that acquiring new

customers can cost five times more than the cost involved in satisfying and

retaining current customers

In the past the customers was taken for a ride as there were not many

players in the fields not much importance was attached to product safety

quality service and product appeal The attitude of the manufacture was that

of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization

globalization and privatization (LPG) the market scenario has changed today

Today the customer has a host of defense mechanism like the customers

protection laws regulation of the government the powerful hands of the

14

organization customersrsquo courts switching to substitute or competitors that

offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been

replaced by ldquocaveat venditorrdquo

In the past after sales service was consider as a cost center Companies

were lethargic in attending to customers complaints Availability of trainee

service personal and quality genuine spare parts posed serious problems

However with the rising competition there could not be much product

differentiation as price and quality were comparable and latest technology

was to each and every company in the field Since there could not be much

differential a tangible assets the companies concentrated on the ldquointangible

assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator

Today after sales service is an important aspect of every company and it is

no more considered as a cost center but considered as a profit center Every

organization strives hard to retain its existing customers at any cost since it is

five times costly to get a new customers then to retain an existing customers

Today most of the industries use information technology to best services to

their customers

MARKETING STRATEGY

15

Strategic thinking is key to the evolution of successful marketing strategies

of APOLLO tyre This involves the following analyses

(a) Understanding markets Strategic perspective of the market requires skilful

analysis of the trend and how they affect the market size and demand for the firmrsquos

product

(b) Finding market niches Price service convenience and technology

are some of the niches in Indian market

(c) Product and service planning Analysis of the customerrsquos

promotion of the brand both of the firm and competitors besides an analysis

of the situation in which the customer uses the product

(i) Distribution Structural changes in inventory management mobile

distribution are some of the key factors that are going to affect the distribution

process in the Indian market

(ii) Managing for result With pressure on costs prices and margins

marketers will have to make effective utilization of every rupee spent in

marketing

Market opportunity of Apollo tyres-

Identification of market opportunity is critical before the management of

affirm takes a decision to launch or diversify in any product area This involves

analysis of the following

Size of the market

Marketing strategies and the extent and quality of services rendered by

other firm in the industry

Market programmed required to satisfy market wants

Identification of key success factors in an industry and linking them to a

16

firmrsquos strengths and weakness

Market opportunity

(a) Size of the market

(b) How well the market is served

(c) Prospective inches

(d) Marketing mix required to succeed

(e) Core competencies required

MARKETING MIX

A Marketing mix is the division of groups to make a particular product

by pricing product branding place and quality Although some

marketers[who] have added other Ps such as personnel and packaging the

fundamentals of marketing typically identifies the four Ps of the marketing mix

as referring to-

1 Product

2 Price

3 Promotion

4 Place

17

Product

A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units Intangible

products are often service based like the tourism industry amp the hotel industry

Typical examples of a mass produced tangible object are the tyre A less

obvious but ubiquitous mass produced service is a computer operating

system

18

Price

The price is the amount a customer pays for the product It is determined by a

number of factors including market share competition material costs product

identity and the customers perceived value of the product The business may

increase or decrease the price of product if other stores have the same

product

Place

Place represents the location where a product can be purchased It is often

referred to as the distribution channel It can include any physical store as well

as virtual stores on the Internet

Promotion

Promotion represents all of the communications that a marketer may

use in the marketplace Promotion has four distinct elements - advertising

public relations word of mouth and point of sale A certain amount of

crossover occurs when promotion uses the four principal elements together

which is common in film promotion Advertising covers any communication

that is paid for from television and cinema commercials radio and Internet

adverts through print media and billboards One of the most notable means of

19

promotion today is the Promotional Product as in useful items distributed to

targeted audiences with no obligation attached This category has grown each

year for the past decade while most other forms have suffered It is the only

form of advertising that targets all five senses and has the recipient thanking

the giver Public relations are where the communication is not directly paid for

and includes press releases sponsorship deals exhibitions conferences

seminars or trade fairs and events Word of mouth is any apparently informal

communication about the product by ordinary individuals satisfied customers

or people specifically engaged to create word of mouth momentum Sales

staff often plays an important role in word of mouth and Public Relations

Broadly defined optimizing the marketing mix is the primary responsibility of

marketing By offering the product with the right combination of the four Ps

marketers can improve their results and marketing effectiveness Making

small changes in the marketing mix is typically considered to be a tactical

change Making large changes in any of the four Ps can be considered

strategic For example a large change in the price say from $1900 to $3900

would be considered a strategic change in the position of the product

However a change of $131 to $13099 would be considered a tactical change

potentially related to a promotional offer

The term Marketing Mix however does not imply that the 4P elements

represent options They are not trade-offs but are fundamental marketing

issues that always need to be addressed They are the fundamental actions

that marketing requires whether determined explicitly or by default

Product Profile

The Apollo Tyres ltd Is leading company for all tyres-manufacturing company

in India and The Apollo Tyres Company manufacturing the tyres for the entire

segment (TRUCK LCV PCR FARMS OTR)

20

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 8: Marketing Strategy Opted by the Apollo Tyres1

Major Players in Tyre Industry

MRF

A leading company in the tyre industry MRF Ltd boasts of an enviable track

record The company has continued in the same vein and has been posting

excellent results notwithstanding the winds of recession blowing across the

economy Performance of the company has been commendable in light of the

fact that the user industry is facing a slowdown The company has benefited

from better productivity and operational efficiency The company caters to a

host of impressive clients It has signed on to be the sole supplier for auto

giants like General Motors Fiat and Ford in India The company is also

renowned for its exports which have also been witnessing positive growth

The company has recently entered the radial tyre segment and has met with

positive response The performance of the company could further improve

with the revival of the auto industry Thus MRF Ltd can be expected to retain

its position in this segment However investors can move out of the scrip

considering the outlook for the industry as a whole

CEAT

Being the second largest selling brand in India with a market share of 146 per

cent Ceat caters primarily to the replacement market Due to the strong

growth in the OEM sector the share of the replacement market in the total

revenue of the company has fallen However the production growth in the

automobile sector over the past few years should provide a boost to the

replacement market in the coming years and Ceat could be a major

beneficiary thereof With the advent of multinationals like Goodyear Michelin

Bridgestone and Continental a major shakeout in the industry is imminent

and the same could result in Ceat which is already operating on thin margins

being hived off as a joint venture with Goodyear in collaboration with which

Ceat has already promoted South Asia Tyres for manufacturing radial tyres in

India With a modest track record on the financial front the forthcoming

results may not be encouraging

7

Apollo Tyres Limited

A slow-down in the tyre market and rubber procurement at high prices has put

the brakes on Apollo Tyres Limited (ATL) The company has traditionally been

the market leader in the truck and bus tyres segments ATL caters to the

replacement segment of the domestic market Following its take over of

Premier Tyres ATLs market share has risen Besides the core truck and bus

tyre business fairly considerable part of its turnover comes from automotive

tubes and flaps for which it has commissioned a plant in Pune Despite a

reversal in the fortune of the automobile industry the chief user base of the

companyrsquos products the demand for truck tyres particularly in the

replacement market was not encouraging Even as tyre producers grapple

with over-capacity and high levels of inventory the government stirred a

hornetrsquos nest by proposing free imports of used and second-hand tyres ATL

has conversion agreements for small tyres with TCIL Stallino Tyres and

Rado Its exports are routed through Apollo International to the US Germany

Brazil Sudan Egypt etc A well-entrenched posend this article to a

friendsition in the replacement market favours ATL and the declining price

trend of key inputs like natural rubber and carbon black may provide relief to

its wafer-thin margins At the current price level the scrip has emerged as

an attractive buy thus accumulate its shares in small lots

Tyres for 2007-08 2008-09 Change

Truck amp Bus 13137 12839 (-)2

Passenger Car 16437 16570 1

Jeep 1467 1469 02

Light Commercial Vehicle 5320 5298 (-)04

Tractor Front 1814 1842 2

Tractor Rear 1234 1315 7

8

Tractor Trailer 886 758 (-)14

Animal Drawn Vehicle 409 281 (-)31

Scooter Moped 11604 10883 (-)6

Motor Cycle 27921 30148 8

Industrial 733 568 (-)23

Off the Road (OTR) 141 136 (-)4

Total 81103 82107 1

Apollo Tyres Ltd is considering building a greenfield tyre plant in south India It

is looking at Tamil Nadu and Andhra Pradesh as options According to Onkar

S Kanwar Apollos vice chairman and managing director The project outlay

will be around Rs 300 crore and the plant capacity will be 100 tonnes per

day The project will be funded out of internal accruals and term loans

Kanwar rules out any equity infusion It may be recalled that Apollo Tyres

recently issued partly convertible debentures to the promoters

According to Mr Kanwar the proposed facility will roll out truck and bus (radial

and bial) and earthmoving equipment tyres Further if negotiations with

Hyundai Motors (India) Ltd for original equipment supplies succeed the plant

will also roll out car radials The new investment is part of the Rs 400 crore

investment announced by the company recently The company commissioned

its Rs 80 crore 1 lakh tyres per annum capacity car radial tyres plant at

Baroda this January

For Apollo Tyres a plant in Chennai makes economic sense The company

would be able to cut freight costs while supplying to Ashok Leyland (truck

tyres) Tafe (tractor rear tyres) and Hindustan Motors Ltd for its earthmoving

equipment -- all of whom are located in and around Chennai -- and also for

catering to the southern replacement market Currently Apollo Tyres has two

9

facilities in Kerala from where the southern demand is met The south

accounts for 15-18 per cent of the countrys total truck tyre market according

to Mr Kanwar

The peaceful labour environment in Tamil Nadu would help Apollo Tyres The

company has had serious labour problems at its plants The company can

control costs better with its own new facility -- it is currently outsourcing a

sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars

Stallion And since Chennai is a port city exports too will become

competitive

Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo

Tyres We are studying the economics - incentives sales tax exemptions

etc - of locating the unit in Chennai and Andhra Pradesh The new facility

wherever it may come up will boost Apollo Tyres capacity from the current

levels of 244 million tyres annually

In the meanwhile Apollo Tyres talks with Continental AG remain

inconclusive When asked about these negotiations which could result in the

German company taking a 15 per cent stake in the Indian tyre makers equity

Onkar S Kanwar says The final decision will be taken in three months

The Rs 8500 crore Indian tyre industry has attracted substantial foreign

interest Global majors such as Bridgestone and Michelin have already

invested in Indian production facilities Korean tyres are being imported An

equity partnership with Continental will enable Apollo Tyres to access

advanced technology All the global tyre giants spend huge sums in RampD

efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This

effort is focussed on the study of use of different types of rubber chords and

chemicals in tyre manufacture according to Neeraj KanwarThe problem

Continental is also talking to two other Indian companies - JK Tyres and Modi

Rubber -with both of whom it has technical collaboration

A marginal player in the tyre industry a decade ago Apollo Tyres leads the

replacement market in the heavy vehicle and car radials segments It has

achieved this through acquisitions and contract manufacturing One of the

10

reasons for Apollo Tyres going in for a greenfield project is its confidence to

expand its market share The focus is to increase our market share to 25 per

cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says

Bus and truck tyres account for a lions share of the industrys revenues

Since the OE market is margin-sensitive all the action is focussed on the

lucrative replacement market especially in the heavy vehicles segment

According to Satish Sharma product manager at Apollo Tyres The size of

the truck tyre replacement market is 4 lakh tyres per month and our share in

that is 25 per cent

Though the volume will be small talks have been initiated with Volvo India

Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run

for its money Its Apollo Excel tyres rolled out from its Baroda plant have

received an excellent response in the marketplace according to the company

In the OE segment MRF has been losing its hold to Bridgestone And in the

replacement market Apollo Tyres has become a major threat Apollo Tyres is

now negotiating with Hyundai Motors and Hindustan Motors for OE sales The

Kanwars want to reach top spot in the light commercial vehicles segment by

March 2001 In the two wheeler market Apollo is focussing on the motorcycle

tyres market

To boost sales Apollo Tyres has tied up with Castrol India and Kotak

Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve

their earnings The tie-up with Kotak Mahindra will facilitate sales by providing

finance for tyre purchases for the first time in India Apollo Tyres has

increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to

push sales

With all car makers planning to expand capacities the car radial market is

expected to expand rapidly According to the Apollo management the

company sells 11 lakh of the 5 lakh car radials sold per month in India today

At present the companys tyres are fitted as OE in Hindustan Motors

Ambassador and Contessa models in tractors from Tafe Punjab Tractors

and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco

11

Industry was on a smooth ride till FY08 The industry tonnage production

registered a 5-year Compounded Annual Growth Rate (CAGR) of 802

between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded

a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle

and car tyre categories grew at 1334 1227 and 1398 respectively in

this period

However as the economy in general and automobile industry in specific

slowed down in FY09 the tyre demand too came under pressure In the first

nine months of FY09 the industry managed a tonnage growth of only 219

against a growth of 738 in the same period last year The tyre offtake to the

Original Equipment Manufacturers (OEMs) declined by 617 during this

period The TampB tyre category was the worst affected with the total offtake of

these tyres declining by 001 in the first nine months Also in the face of

global slowdown and stiff Chinese competition the export market offtake

declined by 982 during this period

On the face of these demand-side pressures the tyre industry saw production

adjustments from all the major players in the last couple of months The

government too tried to provide external stimulus by effecting 6 excise duty

cut across industries (the excise duty for tyres was brought down from 14 to

10 wef December 7 2008 and then further reduced to 8 wef February

25 2009) In all the gloom one silver lining for the industry has been the

easing of the raw material prices from September 2008 onwards However

the impact of the fall in commodity prices was not visible in the nine months

results of the companies as the companies were laden with high-price

inventories The benefits of the sublime raw material prices will become

visible only in the last quarter of FY09 provided the demand too supports the

topline

The tyre industry faces competition from China in the domestic market

Imports as a percentage of total TampB tyre production stood at 10 in FY08

with more than 90 of these imports coming from China While the anti-

dumping duty is levied on the import of Chinese TampB bias tyres the industry

now wants it to be extended to Chinese TampB radial tyres to alleviate the

12

import threat In addition the industry is also keen on customs duty relief on

raw materials not producedmanufactured in the country so as to compete

with the Chinese tyres

Radialisation though in its infancy in TampB tyre category is making inroads

Most manufacturers have capex plans for radial TampB tyres with no new

capacity being added for bias tyres This indicates that the industry foresees

radialisation to take further hold in the TampB tyre category In the passenger

car segment radialisation has reached 97 up from 95 a year ago The

Industry is also banking on the customised Off The Road (OTR) tyres and

adding capacity in this category

The Indian manufacturers are looking at increasing their global footprints

Apollo is undertaking an expansion plan at its Dunlop plant in South Africa

Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It

has also entered into a manufacturing agreement with Chinese manufacturers

to sell JK-branded tyres in the export markets

13

COMPANY PROFILE

In todayrsquos world of intense competition and rapid dynamism all the companies

worldwide are tuning their focuses on the customer Suddenly the customer

had succeeded in capturing all the attention of the companies towards him so

much so that the once famous maxim ldquocustomer is the godrdquo has become so

true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of

these companies and none other then the customer has brought this about

Earlier there was a sellers market since goods and services were in short

supply and the sellers use to call the shots But ever since the advent of the

era of globalization there has been total transformation in the way the

customers being perceived Today marketers are directing their efforts in

retaining the customers and customersrsquo base Their focus has shifted towards

integrating the three elements people service and marketing

The customerrsquos importance has assumed imponderable proportions in todayrsquos

world because of the inherent value that the customers command A

customers can ldquomake or breakrdquo a company It is the responsibility of every

company to see that all its customers are equally satisfied with them for one

single dissatisfied customer will tell at least nine others about the

dissatisfaction and will spark off a chain reaction and spell doom for that

company In such scenario retention of the existing customers assumes

diabolical proportion Research has thrown light on some important aspects of

customersrsquo retention it has been proved empirically that acquiring new

customers can cost five times more than the cost involved in satisfying and

retaining current customers

In the past the customers was taken for a ride as there were not many

players in the fields not much importance was attached to product safety

quality service and product appeal The attitude of the manufacture was that

of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization

globalization and privatization (LPG) the market scenario has changed today

Today the customer has a host of defense mechanism like the customers

protection laws regulation of the government the powerful hands of the

14

organization customersrsquo courts switching to substitute or competitors that

offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been

replaced by ldquocaveat venditorrdquo

In the past after sales service was consider as a cost center Companies

were lethargic in attending to customers complaints Availability of trainee

service personal and quality genuine spare parts posed serious problems

However with the rising competition there could not be much product

differentiation as price and quality were comparable and latest technology

was to each and every company in the field Since there could not be much

differential a tangible assets the companies concentrated on the ldquointangible

assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator

Today after sales service is an important aspect of every company and it is

no more considered as a cost center but considered as a profit center Every

organization strives hard to retain its existing customers at any cost since it is

five times costly to get a new customers then to retain an existing customers

Today most of the industries use information technology to best services to

their customers

MARKETING STRATEGY

15

Strategic thinking is key to the evolution of successful marketing strategies

of APOLLO tyre This involves the following analyses

(a) Understanding markets Strategic perspective of the market requires skilful

analysis of the trend and how they affect the market size and demand for the firmrsquos

product

(b) Finding market niches Price service convenience and technology

are some of the niches in Indian market

(c) Product and service planning Analysis of the customerrsquos

promotion of the brand both of the firm and competitors besides an analysis

of the situation in which the customer uses the product

(i) Distribution Structural changes in inventory management mobile

distribution are some of the key factors that are going to affect the distribution

process in the Indian market

(ii) Managing for result With pressure on costs prices and margins

marketers will have to make effective utilization of every rupee spent in

marketing

Market opportunity of Apollo tyres-

Identification of market opportunity is critical before the management of

affirm takes a decision to launch or diversify in any product area This involves

analysis of the following

Size of the market

Marketing strategies and the extent and quality of services rendered by

other firm in the industry

Market programmed required to satisfy market wants

Identification of key success factors in an industry and linking them to a

16

firmrsquos strengths and weakness

Market opportunity

(a) Size of the market

(b) How well the market is served

(c) Prospective inches

(d) Marketing mix required to succeed

(e) Core competencies required

MARKETING MIX

A Marketing mix is the division of groups to make a particular product

by pricing product branding place and quality Although some

marketers[who] have added other Ps such as personnel and packaging the

fundamentals of marketing typically identifies the four Ps of the marketing mix

as referring to-

1 Product

2 Price

3 Promotion

4 Place

17

Product

A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units Intangible

products are often service based like the tourism industry amp the hotel industry

Typical examples of a mass produced tangible object are the tyre A less

obvious but ubiquitous mass produced service is a computer operating

system

18

Price

The price is the amount a customer pays for the product It is determined by a

number of factors including market share competition material costs product

identity and the customers perceived value of the product The business may

increase or decrease the price of product if other stores have the same

product

Place

Place represents the location where a product can be purchased It is often

referred to as the distribution channel It can include any physical store as well

as virtual stores on the Internet

Promotion

Promotion represents all of the communications that a marketer may

use in the marketplace Promotion has four distinct elements - advertising

public relations word of mouth and point of sale A certain amount of

crossover occurs when promotion uses the four principal elements together

which is common in film promotion Advertising covers any communication

that is paid for from television and cinema commercials radio and Internet

adverts through print media and billboards One of the most notable means of

19

promotion today is the Promotional Product as in useful items distributed to

targeted audiences with no obligation attached This category has grown each

year for the past decade while most other forms have suffered It is the only

form of advertising that targets all five senses and has the recipient thanking

the giver Public relations are where the communication is not directly paid for

and includes press releases sponsorship deals exhibitions conferences

seminars or trade fairs and events Word of mouth is any apparently informal

communication about the product by ordinary individuals satisfied customers

or people specifically engaged to create word of mouth momentum Sales

staff often plays an important role in word of mouth and Public Relations

Broadly defined optimizing the marketing mix is the primary responsibility of

marketing By offering the product with the right combination of the four Ps

marketers can improve their results and marketing effectiveness Making

small changes in the marketing mix is typically considered to be a tactical

change Making large changes in any of the four Ps can be considered

strategic For example a large change in the price say from $1900 to $3900

would be considered a strategic change in the position of the product

However a change of $131 to $13099 would be considered a tactical change

potentially related to a promotional offer

The term Marketing Mix however does not imply that the 4P elements

represent options They are not trade-offs but are fundamental marketing

issues that always need to be addressed They are the fundamental actions

that marketing requires whether determined explicitly or by default

Product Profile

The Apollo Tyres ltd Is leading company for all tyres-manufacturing company

in India and The Apollo Tyres Company manufacturing the tyres for the entire

segment (TRUCK LCV PCR FARMS OTR)

20

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 9: Marketing Strategy Opted by the Apollo Tyres1

Apollo Tyres Limited

A slow-down in the tyre market and rubber procurement at high prices has put

the brakes on Apollo Tyres Limited (ATL) The company has traditionally been

the market leader in the truck and bus tyres segments ATL caters to the

replacement segment of the domestic market Following its take over of

Premier Tyres ATLs market share has risen Besides the core truck and bus

tyre business fairly considerable part of its turnover comes from automotive

tubes and flaps for which it has commissioned a plant in Pune Despite a

reversal in the fortune of the automobile industry the chief user base of the

companyrsquos products the demand for truck tyres particularly in the

replacement market was not encouraging Even as tyre producers grapple

with over-capacity and high levels of inventory the government stirred a

hornetrsquos nest by proposing free imports of used and second-hand tyres ATL

has conversion agreements for small tyres with TCIL Stallino Tyres and

Rado Its exports are routed through Apollo International to the US Germany

Brazil Sudan Egypt etc A well-entrenched posend this article to a

friendsition in the replacement market favours ATL and the declining price

trend of key inputs like natural rubber and carbon black may provide relief to

its wafer-thin margins At the current price level the scrip has emerged as

an attractive buy thus accumulate its shares in small lots

Tyres for 2007-08 2008-09 Change

Truck amp Bus 13137 12839 (-)2

Passenger Car 16437 16570 1

Jeep 1467 1469 02

Light Commercial Vehicle 5320 5298 (-)04

Tractor Front 1814 1842 2

Tractor Rear 1234 1315 7

8

Tractor Trailer 886 758 (-)14

Animal Drawn Vehicle 409 281 (-)31

Scooter Moped 11604 10883 (-)6

Motor Cycle 27921 30148 8

Industrial 733 568 (-)23

Off the Road (OTR) 141 136 (-)4

Total 81103 82107 1

Apollo Tyres Ltd is considering building a greenfield tyre plant in south India It

is looking at Tamil Nadu and Andhra Pradesh as options According to Onkar

S Kanwar Apollos vice chairman and managing director The project outlay

will be around Rs 300 crore and the plant capacity will be 100 tonnes per

day The project will be funded out of internal accruals and term loans

Kanwar rules out any equity infusion It may be recalled that Apollo Tyres

recently issued partly convertible debentures to the promoters

According to Mr Kanwar the proposed facility will roll out truck and bus (radial

and bial) and earthmoving equipment tyres Further if negotiations with

Hyundai Motors (India) Ltd for original equipment supplies succeed the plant

will also roll out car radials The new investment is part of the Rs 400 crore

investment announced by the company recently The company commissioned

its Rs 80 crore 1 lakh tyres per annum capacity car radial tyres plant at

Baroda this January

For Apollo Tyres a plant in Chennai makes economic sense The company

would be able to cut freight costs while supplying to Ashok Leyland (truck

tyres) Tafe (tractor rear tyres) and Hindustan Motors Ltd for its earthmoving

equipment -- all of whom are located in and around Chennai -- and also for

catering to the southern replacement market Currently Apollo Tyres has two

9

facilities in Kerala from where the southern demand is met The south

accounts for 15-18 per cent of the countrys total truck tyre market according

to Mr Kanwar

The peaceful labour environment in Tamil Nadu would help Apollo Tyres The

company has had serious labour problems at its plants The company can

control costs better with its own new facility -- it is currently outsourcing a

sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars

Stallion And since Chennai is a port city exports too will become

competitive

Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo

Tyres We are studying the economics - incentives sales tax exemptions

etc - of locating the unit in Chennai and Andhra Pradesh The new facility

wherever it may come up will boost Apollo Tyres capacity from the current

levels of 244 million tyres annually

In the meanwhile Apollo Tyres talks with Continental AG remain

inconclusive When asked about these negotiations which could result in the

German company taking a 15 per cent stake in the Indian tyre makers equity

Onkar S Kanwar says The final decision will be taken in three months

The Rs 8500 crore Indian tyre industry has attracted substantial foreign

interest Global majors such as Bridgestone and Michelin have already

invested in Indian production facilities Korean tyres are being imported An

equity partnership with Continental will enable Apollo Tyres to access

advanced technology All the global tyre giants spend huge sums in RampD

efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This

effort is focussed on the study of use of different types of rubber chords and

chemicals in tyre manufacture according to Neeraj KanwarThe problem

Continental is also talking to two other Indian companies - JK Tyres and Modi

Rubber -with both of whom it has technical collaboration

A marginal player in the tyre industry a decade ago Apollo Tyres leads the

replacement market in the heavy vehicle and car radials segments It has

achieved this through acquisitions and contract manufacturing One of the

10

reasons for Apollo Tyres going in for a greenfield project is its confidence to

expand its market share The focus is to increase our market share to 25 per

cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says

Bus and truck tyres account for a lions share of the industrys revenues

Since the OE market is margin-sensitive all the action is focussed on the

lucrative replacement market especially in the heavy vehicles segment

According to Satish Sharma product manager at Apollo Tyres The size of

the truck tyre replacement market is 4 lakh tyres per month and our share in

that is 25 per cent

Though the volume will be small talks have been initiated with Volvo India

Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run

for its money Its Apollo Excel tyres rolled out from its Baroda plant have

received an excellent response in the marketplace according to the company

In the OE segment MRF has been losing its hold to Bridgestone And in the

replacement market Apollo Tyres has become a major threat Apollo Tyres is

now negotiating with Hyundai Motors and Hindustan Motors for OE sales The

Kanwars want to reach top spot in the light commercial vehicles segment by

March 2001 In the two wheeler market Apollo is focussing on the motorcycle

tyres market

To boost sales Apollo Tyres has tied up with Castrol India and Kotak

Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve

their earnings The tie-up with Kotak Mahindra will facilitate sales by providing

finance for tyre purchases for the first time in India Apollo Tyres has

increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to

push sales

With all car makers planning to expand capacities the car radial market is

expected to expand rapidly According to the Apollo management the

company sells 11 lakh of the 5 lakh car radials sold per month in India today

At present the companys tyres are fitted as OE in Hindustan Motors

Ambassador and Contessa models in tractors from Tafe Punjab Tractors

and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco

11

Industry was on a smooth ride till FY08 The industry tonnage production

registered a 5-year Compounded Annual Growth Rate (CAGR) of 802

between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded

a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle

and car tyre categories grew at 1334 1227 and 1398 respectively in

this period

However as the economy in general and automobile industry in specific

slowed down in FY09 the tyre demand too came under pressure In the first

nine months of FY09 the industry managed a tonnage growth of only 219

against a growth of 738 in the same period last year The tyre offtake to the

Original Equipment Manufacturers (OEMs) declined by 617 during this

period The TampB tyre category was the worst affected with the total offtake of

these tyres declining by 001 in the first nine months Also in the face of

global slowdown and stiff Chinese competition the export market offtake

declined by 982 during this period

On the face of these demand-side pressures the tyre industry saw production

adjustments from all the major players in the last couple of months The

government too tried to provide external stimulus by effecting 6 excise duty

cut across industries (the excise duty for tyres was brought down from 14 to

10 wef December 7 2008 and then further reduced to 8 wef February

25 2009) In all the gloom one silver lining for the industry has been the

easing of the raw material prices from September 2008 onwards However

the impact of the fall in commodity prices was not visible in the nine months

results of the companies as the companies were laden with high-price

inventories The benefits of the sublime raw material prices will become

visible only in the last quarter of FY09 provided the demand too supports the

topline

The tyre industry faces competition from China in the domestic market

Imports as a percentage of total TampB tyre production stood at 10 in FY08

with more than 90 of these imports coming from China While the anti-

dumping duty is levied on the import of Chinese TampB bias tyres the industry

now wants it to be extended to Chinese TampB radial tyres to alleviate the

12

import threat In addition the industry is also keen on customs duty relief on

raw materials not producedmanufactured in the country so as to compete

with the Chinese tyres

Radialisation though in its infancy in TampB tyre category is making inroads

Most manufacturers have capex plans for radial TampB tyres with no new

capacity being added for bias tyres This indicates that the industry foresees

radialisation to take further hold in the TampB tyre category In the passenger

car segment radialisation has reached 97 up from 95 a year ago The

Industry is also banking on the customised Off The Road (OTR) tyres and

adding capacity in this category

The Indian manufacturers are looking at increasing their global footprints

Apollo is undertaking an expansion plan at its Dunlop plant in South Africa

Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It

has also entered into a manufacturing agreement with Chinese manufacturers

to sell JK-branded tyres in the export markets

13

COMPANY PROFILE

In todayrsquos world of intense competition and rapid dynamism all the companies

worldwide are tuning their focuses on the customer Suddenly the customer

had succeeded in capturing all the attention of the companies towards him so

much so that the once famous maxim ldquocustomer is the godrdquo has become so

true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of

these companies and none other then the customer has brought this about

Earlier there was a sellers market since goods and services were in short

supply and the sellers use to call the shots But ever since the advent of the

era of globalization there has been total transformation in the way the

customers being perceived Today marketers are directing their efforts in

retaining the customers and customersrsquo base Their focus has shifted towards

integrating the three elements people service and marketing

The customerrsquos importance has assumed imponderable proportions in todayrsquos

world because of the inherent value that the customers command A

customers can ldquomake or breakrdquo a company It is the responsibility of every

company to see that all its customers are equally satisfied with them for one

single dissatisfied customer will tell at least nine others about the

dissatisfaction and will spark off a chain reaction and spell doom for that

company In such scenario retention of the existing customers assumes

diabolical proportion Research has thrown light on some important aspects of

customersrsquo retention it has been proved empirically that acquiring new

customers can cost five times more than the cost involved in satisfying and

retaining current customers

In the past the customers was taken for a ride as there were not many

players in the fields not much importance was attached to product safety

quality service and product appeal The attitude of the manufacture was that

of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization

globalization and privatization (LPG) the market scenario has changed today

Today the customer has a host of defense mechanism like the customers

protection laws regulation of the government the powerful hands of the

14

organization customersrsquo courts switching to substitute or competitors that

offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been

replaced by ldquocaveat venditorrdquo

In the past after sales service was consider as a cost center Companies

were lethargic in attending to customers complaints Availability of trainee

service personal and quality genuine spare parts posed serious problems

However with the rising competition there could not be much product

differentiation as price and quality were comparable and latest technology

was to each and every company in the field Since there could not be much

differential a tangible assets the companies concentrated on the ldquointangible

assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator

Today after sales service is an important aspect of every company and it is

no more considered as a cost center but considered as a profit center Every

organization strives hard to retain its existing customers at any cost since it is

five times costly to get a new customers then to retain an existing customers

Today most of the industries use information technology to best services to

their customers

MARKETING STRATEGY

15

Strategic thinking is key to the evolution of successful marketing strategies

of APOLLO tyre This involves the following analyses

(a) Understanding markets Strategic perspective of the market requires skilful

analysis of the trend and how they affect the market size and demand for the firmrsquos

product

(b) Finding market niches Price service convenience and technology

are some of the niches in Indian market

(c) Product and service planning Analysis of the customerrsquos

promotion of the brand both of the firm and competitors besides an analysis

of the situation in which the customer uses the product

(i) Distribution Structural changes in inventory management mobile

distribution are some of the key factors that are going to affect the distribution

process in the Indian market

(ii) Managing for result With pressure on costs prices and margins

marketers will have to make effective utilization of every rupee spent in

marketing

Market opportunity of Apollo tyres-

Identification of market opportunity is critical before the management of

affirm takes a decision to launch or diversify in any product area This involves

analysis of the following

Size of the market

Marketing strategies and the extent and quality of services rendered by

other firm in the industry

Market programmed required to satisfy market wants

Identification of key success factors in an industry and linking them to a

16

firmrsquos strengths and weakness

Market opportunity

(a) Size of the market

(b) How well the market is served

(c) Prospective inches

(d) Marketing mix required to succeed

(e) Core competencies required

MARKETING MIX

A Marketing mix is the division of groups to make a particular product

by pricing product branding place and quality Although some

marketers[who] have added other Ps such as personnel and packaging the

fundamentals of marketing typically identifies the four Ps of the marketing mix

as referring to-

1 Product

2 Price

3 Promotion

4 Place

17

Product

A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units Intangible

products are often service based like the tourism industry amp the hotel industry

Typical examples of a mass produced tangible object are the tyre A less

obvious but ubiquitous mass produced service is a computer operating

system

18

Price

The price is the amount a customer pays for the product It is determined by a

number of factors including market share competition material costs product

identity and the customers perceived value of the product The business may

increase or decrease the price of product if other stores have the same

product

Place

Place represents the location where a product can be purchased It is often

referred to as the distribution channel It can include any physical store as well

as virtual stores on the Internet

Promotion

Promotion represents all of the communications that a marketer may

use in the marketplace Promotion has four distinct elements - advertising

public relations word of mouth and point of sale A certain amount of

crossover occurs when promotion uses the four principal elements together

which is common in film promotion Advertising covers any communication

that is paid for from television and cinema commercials radio and Internet

adverts through print media and billboards One of the most notable means of

19

promotion today is the Promotional Product as in useful items distributed to

targeted audiences with no obligation attached This category has grown each

year for the past decade while most other forms have suffered It is the only

form of advertising that targets all five senses and has the recipient thanking

the giver Public relations are where the communication is not directly paid for

and includes press releases sponsorship deals exhibitions conferences

seminars or trade fairs and events Word of mouth is any apparently informal

communication about the product by ordinary individuals satisfied customers

or people specifically engaged to create word of mouth momentum Sales

staff often plays an important role in word of mouth and Public Relations

Broadly defined optimizing the marketing mix is the primary responsibility of

marketing By offering the product with the right combination of the four Ps

marketers can improve their results and marketing effectiveness Making

small changes in the marketing mix is typically considered to be a tactical

change Making large changes in any of the four Ps can be considered

strategic For example a large change in the price say from $1900 to $3900

would be considered a strategic change in the position of the product

However a change of $131 to $13099 would be considered a tactical change

potentially related to a promotional offer

The term Marketing Mix however does not imply that the 4P elements

represent options They are not trade-offs but are fundamental marketing

issues that always need to be addressed They are the fundamental actions

that marketing requires whether determined explicitly or by default

Product Profile

The Apollo Tyres ltd Is leading company for all tyres-manufacturing company

in India and The Apollo Tyres Company manufacturing the tyres for the entire

segment (TRUCK LCV PCR FARMS OTR)

20

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 10: Marketing Strategy Opted by the Apollo Tyres1

Tractor Trailer 886 758 (-)14

Animal Drawn Vehicle 409 281 (-)31

Scooter Moped 11604 10883 (-)6

Motor Cycle 27921 30148 8

Industrial 733 568 (-)23

Off the Road (OTR) 141 136 (-)4

Total 81103 82107 1

Apollo Tyres Ltd is considering building a greenfield tyre plant in south India It

is looking at Tamil Nadu and Andhra Pradesh as options According to Onkar

S Kanwar Apollos vice chairman and managing director The project outlay

will be around Rs 300 crore and the plant capacity will be 100 tonnes per

day The project will be funded out of internal accruals and term loans

Kanwar rules out any equity infusion It may be recalled that Apollo Tyres

recently issued partly convertible debentures to the promoters

According to Mr Kanwar the proposed facility will roll out truck and bus (radial

and bial) and earthmoving equipment tyres Further if negotiations with

Hyundai Motors (India) Ltd for original equipment supplies succeed the plant

will also roll out car radials The new investment is part of the Rs 400 crore

investment announced by the company recently The company commissioned

its Rs 80 crore 1 lakh tyres per annum capacity car radial tyres plant at

Baroda this January

For Apollo Tyres a plant in Chennai makes economic sense The company

would be able to cut freight costs while supplying to Ashok Leyland (truck

tyres) Tafe (tractor rear tyres) and Hindustan Motors Ltd for its earthmoving

equipment -- all of whom are located in and around Chennai -- and also for

catering to the southern replacement market Currently Apollo Tyres has two

9

facilities in Kerala from where the southern demand is met The south

accounts for 15-18 per cent of the countrys total truck tyre market according

to Mr Kanwar

The peaceful labour environment in Tamil Nadu would help Apollo Tyres The

company has had serious labour problems at its plants The company can

control costs better with its own new facility -- it is currently outsourcing a

sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars

Stallion And since Chennai is a port city exports too will become

competitive

Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo

Tyres We are studying the economics - incentives sales tax exemptions

etc - of locating the unit in Chennai and Andhra Pradesh The new facility

wherever it may come up will boost Apollo Tyres capacity from the current

levels of 244 million tyres annually

In the meanwhile Apollo Tyres talks with Continental AG remain

inconclusive When asked about these negotiations which could result in the

German company taking a 15 per cent stake in the Indian tyre makers equity

Onkar S Kanwar says The final decision will be taken in three months

The Rs 8500 crore Indian tyre industry has attracted substantial foreign

interest Global majors such as Bridgestone and Michelin have already

invested in Indian production facilities Korean tyres are being imported An

equity partnership with Continental will enable Apollo Tyres to access

advanced technology All the global tyre giants spend huge sums in RampD

efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This

effort is focussed on the study of use of different types of rubber chords and

chemicals in tyre manufacture according to Neeraj KanwarThe problem

Continental is also talking to two other Indian companies - JK Tyres and Modi

Rubber -with both of whom it has technical collaboration

A marginal player in the tyre industry a decade ago Apollo Tyres leads the

replacement market in the heavy vehicle and car radials segments It has

achieved this through acquisitions and contract manufacturing One of the

10

reasons for Apollo Tyres going in for a greenfield project is its confidence to

expand its market share The focus is to increase our market share to 25 per

cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says

Bus and truck tyres account for a lions share of the industrys revenues

Since the OE market is margin-sensitive all the action is focussed on the

lucrative replacement market especially in the heavy vehicles segment

According to Satish Sharma product manager at Apollo Tyres The size of

the truck tyre replacement market is 4 lakh tyres per month and our share in

that is 25 per cent

Though the volume will be small talks have been initiated with Volvo India

Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run

for its money Its Apollo Excel tyres rolled out from its Baroda plant have

received an excellent response in the marketplace according to the company

In the OE segment MRF has been losing its hold to Bridgestone And in the

replacement market Apollo Tyres has become a major threat Apollo Tyres is

now negotiating with Hyundai Motors and Hindustan Motors for OE sales The

Kanwars want to reach top spot in the light commercial vehicles segment by

March 2001 In the two wheeler market Apollo is focussing on the motorcycle

tyres market

To boost sales Apollo Tyres has tied up with Castrol India and Kotak

Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve

their earnings The tie-up with Kotak Mahindra will facilitate sales by providing

finance for tyre purchases for the first time in India Apollo Tyres has

increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to

push sales

With all car makers planning to expand capacities the car radial market is

expected to expand rapidly According to the Apollo management the

company sells 11 lakh of the 5 lakh car radials sold per month in India today

At present the companys tyres are fitted as OE in Hindustan Motors

Ambassador and Contessa models in tractors from Tafe Punjab Tractors

and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco

11

Industry was on a smooth ride till FY08 The industry tonnage production

registered a 5-year Compounded Annual Growth Rate (CAGR) of 802

between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded

a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle

and car tyre categories grew at 1334 1227 and 1398 respectively in

this period

However as the economy in general and automobile industry in specific

slowed down in FY09 the tyre demand too came under pressure In the first

nine months of FY09 the industry managed a tonnage growth of only 219

against a growth of 738 in the same period last year The tyre offtake to the

Original Equipment Manufacturers (OEMs) declined by 617 during this

period The TampB tyre category was the worst affected with the total offtake of

these tyres declining by 001 in the first nine months Also in the face of

global slowdown and stiff Chinese competition the export market offtake

declined by 982 during this period

On the face of these demand-side pressures the tyre industry saw production

adjustments from all the major players in the last couple of months The

government too tried to provide external stimulus by effecting 6 excise duty

cut across industries (the excise duty for tyres was brought down from 14 to

10 wef December 7 2008 and then further reduced to 8 wef February

25 2009) In all the gloom one silver lining for the industry has been the

easing of the raw material prices from September 2008 onwards However

the impact of the fall in commodity prices was not visible in the nine months

results of the companies as the companies were laden with high-price

inventories The benefits of the sublime raw material prices will become

visible only in the last quarter of FY09 provided the demand too supports the

topline

The tyre industry faces competition from China in the domestic market

Imports as a percentage of total TampB tyre production stood at 10 in FY08

with more than 90 of these imports coming from China While the anti-

dumping duty is levied on the import of Chinese TampB bias tyres the industry

now wants it to be extended to Chinese TampB radial tyres to alleviate the

12

import threat In addition the industry is also keen on customs duty relief on

raw materials not producedmanufactured in the country so as to compete

with the Chinese tyres

Radialisation though in its infancy in TampB tyre category is making inroads

Most manufacturers have capex plans for radial TampB tyres with no new

capacity being added for bias tyres This indicates that the industry foresees

radialisation to take further hold in the TampB tyre category In the passenger

car segment radialisation has reached 97 up from 95 a year ago The

Industry is also banking on the customised Off The Road (OTR) tyres and

adding capacity in this category

The Indian manufacturers are looking at increasing their global footprints

Apollo is undertaking an expansion plan at its Dunlop plant in South Africa

Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It

has also entered into a manufacturing agreement with Chinese manufacturers

to sell JK-branded tyres in the export markets

13

COMPANY PROFILE

In todayrsquos world of intense competition and rapid dynamism all the companies

worldwide are tuning their focuses on the customer Suddenly the customer

had succeeded in capturing all the attention of the companies towards him so

much so that the once famous maxim ldquocustomer is the godrdquo has become so

true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of

these companies and none other then the customer has brought this about

Earlier there was a sellers market since goods and services were in short

supply and the sellers use to call the shots But ever since the advent of the

era of globalization there has been total transformation in the way the

customers being perceived Today marketers are directing their efforts in

retaining the customers and customersrsquo base Their focus has shifted towards

integrating the three elements people service and marketing

The customerrsquos importance has assumed imponderable proportions in todayrsquos

world because of the inherent value that the customers command A

customers can ldquomake or breakrdquo a company It is the responsibility of every

company to see that all its customers are equally satisfied with them for one

single dissatisfied customer will tell at least nine others about the

dissatisfaction and will spark off a chain reaction and spell doom for that

company In such scenario retention of the existing customers assumes

diabolical proportion Research has thrown light on some important aspects of

customersrsquo retention it has been proved empirically that acquiring new

customers can cost five times more than the cost involved in satisfying and

retaining current customers

In the past the customers was taken for a ride as there were not many

players in the fields not much importance was attached to product safety

quality service and product appeal The attitude of the manufacture was that

of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization

globalization and privatization (LPG) the market scenario has changed today

Today the customer has a host of defense mechanism like the customers

protection laws regulation of the government the powerful hands of the

14

organization customersrsquo courts switching to substitute or competitors that

offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been

replaced by ldquocaveat venditorrdquo

In the past after sales service was consider as a cost center Companies

were lethargic in attending to customers complaints Availability of trainee

service personal and quality genuine spare parts posed serious problems

However with the rising competition there could not be much product

differentiation as price and quality were comparable and latest technology

was to each and every company in the field Since there could not be much

differential a tangible assets the companies concentrated on the ldquointangible

assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator

Today after sales service is an important aspect of every company and it is

no more considered as a cost center but considered as a profit center Every

organization strives hard to retain its existing customers at any cost since it is

five times costly to get a new customers then to retain an existing customers

Today most of the industries use information technology to best services to

their customers

MARKETING STRATEGY

15

Strategic thinking is key to the evolution of successful marketing strategies

of APOLLO tyre This involves the following analyses

(a) Understanding markets Strategic perspective of the market requires skilful

analysis of the trend and how they affect the market size and demand for the firmrsquos

product

(b) Finding market niches Price service convenience and technology

are some of the niches in Indian market

(c) Product and service planning Analysis of the customerrsquos

promotion of the brand both of the firm and competitors besides an analysis

of the situation in which the customer uses the product

(i) Distribution Structural changes in inventory management mobile

distribution are some of the key factors that are going to affect the distribution

process in the Indian market

(ii) Managing for result With pressure on costs prices and margins

marketers will have to make effective utilization of every rupee spent in

marketing

Market opportunity of Apollo tyres-

Identification of market opportunity is critical before the management of

affirm takes a decision to launch or diversify in any product area This involves

analysis of the following

Size of the market

Marketing strategies and the extent and quality of services rendered by

other firm in the industry

Market programmed required to satisfy market wants

Identification of key success factors in an industry and linking them to a

16

firmrsquos strengths and weakness

Market opportunity

(a) Size of the market

(b) How well the market is served

(c) Prospective inches

(d) Marketing mix required to succeed

(e) Core competencies required

MARKETING MIX

A Marketing mix is the division of groups to make a particular product

by pricing product branding place and quality Although some

marketers[who] have added other Ps such as personnel and packaging the

fundamentals of marketing typically identifies the four Ps of the marketing mix

as referring to-

1 Product

2 Price

3 Promotion

4 Place

17

Product

A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units Intangible

products are often service based like the tourism industry amp the hotel industry

Typical examples of a mass produced tangible object are the tyre A less

obvious but ubiquitous mass produced service is a computer operating

system

18

Price

The price is the amount a customer pays for the product It is determined by a

number of factors including market share competition material costs product

identity and the customers perceived value of the product The business may

increase or decrease the price of product if other stores have the same

product

Place

Place represents the location where a product can be purchased It is often

referred to as the distribution channel It can include any physical store as well

as virtual stores on the Internet

Promotion

Promotion represents all of the communications that a marketer may

use in the marketplace Promotion has four distinct elements - advertising

public relations word of mouth and point of sale A certain amount of

crossover occurs when promotion uses the four principal elements together

which is common in film promotion Advertising covers any communication

that is paid for from television and cinema commercials radio and Internet

adverts through print media and billboards One of the most notable means of

19

promotion today is the Promotional Product as in useful items distributed to

targeted audiences with no obligation attached This category has grown each

year for the past decade while most other forms have suffered It is the only

form of advertising that targets all five senses and has the recipient thanking

the giver Public relations are where the communication is not directly paid for

and includes press releases sponsorship deals exhibitions conferences

seminars or trade fairs and events Word of mouth is any apparently informal

communication about the product by ordinary individuals satisfied customers

or people specifically engaged to create word of mouth momentum Sales

staff often plays an important role in word of mouth and Public Relations

Broadly defined optimizing the marketing mix is the primary responsibility of

marketing By offering the product with the right combination of the four Ps

marketers can improve their results and marketing effectiveness Making

small changes in the marketing mix is typically considered to be a tactical

change Making large changes in any of the four Ps can be considered

strategic For example a large change in the price say from $1900 to $3900

would be considered a strategic change in the position of the product

However a change of $131 to $13099 would be considered a tactical change

potentially related to a promotional offer

The term Marketing Mix however does not imply that the 4P elements

represent options They are not trade-offs but are fundamental marketing

issues that always need to be addressed They are the fundamental actions

that marketing requires whether determined explicitly or by default

Product Profile

The Apollo Tyres ltd Is leading company for all tyres-manufacturing company

in India and The Apollo Tyres Company manufacturing the tyres for the entire

segment (TRUCK LCV PCR FARMS OTR)

20

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 11: Marketing Strategy Opted by the Apollo Tyres1

facilities in Kerala from where the southern demand is met The south

accounts for 15-18 per cent of the countrys total truck tyre market according

to Mr Kanwar

The peaceful labour environment in Tamil Nadu would help Apollo Tyres The

company has had serious labour problems at its plants The company can

control costs better with its own new facility -- it is currently outsourcing a

sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars

Stallion And since Chennai is a port city exports too will become

competitive

Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo

Tyres We are studying the economics - incentives sales tax exemptions

etc - of locating the unit in Chennai and Andhra Pradesh The new facility

wherever it may come up will boost Apollo Tyres capacity from the current

levels of 244 million tyres annually

In the meanwhile Apollo Tyres talks with Continental AG remain

inconclusive When asked about these negotiations which could result in the

German company taking a 15 per cent stake in the Indian tyre makers equity

Onkar S Kanwar says The final decision will be taken in three months

The Rs 8500 crore Indian tyre industry has attracted substantial foreign

interest Global majors such as Bridgestone and Michelin have already

invested in Indian production facilities Korean tyres are being imported An

equity partnership with Continental will enable Apollo Tyres to access

advanced technology All the global tyre giants spend huge sums in RampD

efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This

effort is focussed on the study of use of different types of rubber chords and

chemicals in tyre manufacture according to Neeraj KanwarThe problem

Continental is also talking to two other Indian companies - JK Tyres and Modi

Rubber -with both of whom it has technical collaboration

A marginal player in the tyre industry a decade ago Apollo Tyres leads the

replacement market in the heavy vehicle and car radials segments It has

achieved this through acquisitions and contract manufacturing One of the

10

reasons for Apollo Tyres going in for a greenfield project is its confidence to

expand its market share The focus is to increase our market share to 25 per

cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says

Bus and truck tyres account for a lions share of the industrys revenues

Since the OE market is margin-sensitive all the action is focussed on the

lucrative replacement market especially in the heavy vehicles segment

According to Satish Sharma product manager at Apollo Tyres The size of

the truck tyre replacement market is 4 lakh tyres per month and our share in

that is 25 per cent

Though the volume will be small talks have been initiated with Volvo India

Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run

for its money Its Apollo Excel tyres rolled out from its Baroda plant have

received an excellent response in the marketplace according to the company

In the OE segment MRF has been losing its hold to Bridgestone And in the

replacement market Apollo Tyres has become a major threat Apollo Tyres is

now negotiating with Hyundai Motors and Hindustan Motors for OE sales The

Kanwars want to reach top spot in the light commercial vehicles segment by

March 2001 In the two wheeler market Apollo is focussing on the motorcycle

tyres market

To boost sales Apollo Tyres has tied up with Castrol India and Kotak

Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve

their earnings The tie-up with Kotak Mahindra will facilitate sales by providing

finance for tyre purchases for the first time in India Apollo Tyres has

increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to

push sales

With all car makers planning to expand capacities the car radial market is

expected to expand rapidly According to the Apollo management the

company sells 11 lakh of the 5 lakh car radials sold per month in India today

At present the companys tyres are fitted as OE in Hindustan Motors

Ambassador and Contessa models in tractors from Tafe Punjab Tractors

and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco

11

Industry was on a smooth ride till FY08 The industry tonnage production

registered a 5-year Compounded Annual Growth Rate (CAGR) of 802

between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded

a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle

and car tyre categories grew at 1334 1227 and 1398 respectively in

this period

However as the economy in general and automobile industry in specific

slowed down in FY09 the tyre demand too came under pressure In the first

nine months of FY09 the industry managed a tonnage growth of only 219

against a growth of 738 in the same period last year The tyre offtake to the

Original Equipment Manufacturers (OEMs) declined by 617 during this

period The TampB tyre category was the worst affected with the total offtake of

these tyres declining by 001 in the first nine months Also in the face of

global slowdown and stiff Chinese competition the export market offtake

declined by 982 during this period

On the face of these demand-side pressures the tyre industry saw production

adjustments from all the major players in the last couple of months The

government too tried to provide external stimulus by effecting 6 excise duty

cut across industries (the excise duty for tyres was brought down from 14 to

10 wef December 7 2008 and then further reduced to 8 wef February

25 2009) In all the gloom one silver lining for the industry has been the

easing of the raw material prices from September 2008 onwards However

the impact of the fall in commodity prices was not visible in the nine months

results of the companies as the companies were laden with high-price

inventories The benefits of the sublime raw material prices will become

visible only in the last quarter of FY09 provided the demand too supports the

topline

The tyre industry faces competition from China in the domestic market

Imports as a percentage of total TampB tyre production stood at 10 in FY08

with more than 90 of these imports coming from China While the anti-

dumping duty is levied on the import of Chinese TampB bias tyres the industry

now wants it to be extended to Chinese TampB radial tyres to alleviate the

12

import threat In addition the industry is also keen on customs duty relief on

raw materials not producedmanufactured in the country so as to compete

with the Chinese tyres

Radialisation though in its infancy in TampB tyre category is making inroads

Most manufacturers have capex plans for radial TampB tyres with no new

capacity being added for bias tyres This indicates that the industry foresees

radialisation to take further hold in the TampB tyre category In the passenger

car segment radialisation has reached 97 up from 95 a year ago The

Industry is also banking on the customised Off The Road (OTR) tyres and

adding capacity in this category

The Indian manufacturers are looking at increasing their global footprints

Apollo is undertaking an expansion plan at its Dunlop plant in South Africa

Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It

has also entered into a manufacturing agreement with Chinese manufacturers

to sell JK-branded tyres in the export markets

13

COMPANY PROFILE

In todayrsquos world of intense competition and rapid dynamism all the companies

worldwide are tuning their focuses on the customer Suddenly the customer

had succeeded in capturing all the attention of the companies towards him so

much so that the once famous maxim ldquocustomer is the godrdquo has become so

true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of

these companies and none other then the customer has brought this about

Earlier there was a sellers market since goods and services were in short

supply and the sellers use to call the shots But ever since the advent of the

era of globalization there has been total transformation in the way the

customers being perceived Today marketers are directing their efforts in

retaining the customers and customersrsquo base Their focus has shifted towards

integrating the three elements people service and marketing

The customerrsquos importance has assumed imponderable proportions in todayrsquos

world because of the inherent value that the customers command A

customers can ldquomake or breakrdquo a company It is the responsibility of every

company to see that all its customers are equally satisfied with them for one

single dissatisfied customer will tell at least nine others about the

dissatisfaction and will spark off a chain reaction and spell doom for that

company In such scenario retention of the existing customers assumes

diabolical proportion Research has thrown light on some important aspects of

customersrsquo retention it has been proved empirically that acquiring new

customers can cost five times more than the cost involved in satisfying and

retaining current customers

In the past the customers was taken for a ride as there were not many

players in the fields not much importance was attached to product safety

quality service and product appeal The attitude of the manufacture was that

of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization

globalization and privatization (LPG) the market scenario has changed today

Today the customer has a host of defense mechanism like the customers

protection laws regulation of the government the powerful hands of the

14

organization customersrsquo courts switching to substitute or competitors that

offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been

replaced by ldquocaveat venditorrdquo

In the past after sales service was consider as a cost center Companies

were lethargic in attending to customers complaints Availability of trainee

service personal and quality genuine spare parts posed serious problems

However with the rising competition there could not be much product

differentiation as price and quality were comparable and latest technology

was to each and every company in the field Since there could not be much

differential a tangible assets the companies concentrated on the ldquointangible

assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator

Today after sales service is an important aspect of every company and it is

no more considered as a cost center but considered as a profit center Every

organization strives hard to retain its existing customers at any cost since it is

five times costly to get a new customers then to retain an existing customers

Today most of the industries use information technology to best services to

their customers

MARKETING STRATEGY

15

Strategic thinking is key to the evolution of successful marketing strategies

of APOLLO tyre This involves the following analyses

(a) Understanding markets Strategic perspective of the market requires skilful

analysis of the trend and how they affect the market size and demand for the firmrsquos

product

(b) Finding market niches Price service convenience and technology

are some of the niches in Indian market

(c) Product and service planning Analysis of the customerrsquos

promotion of the brand both of the firm and competitors besides an analysis

of the situation in which the customer uses the product

(i) Distribution Structural changes in inventory management mobile

distribution are some of the key factors that are going to affect the distribution

process in the Indian market

(ii) Managing for result With pressure on costs prices and margins

marketers will have to make effective utilization of every rupee spent in

marketing

Market opportunity of Apollo tyres-

Identification of market opportunity is critical before the management of

affirm takes a decision to launch or diversify in any product area This involves

analysis of the following

Size of the market

Marketing strategies and the extent and quality of services rendered by

other firm in the industry

Market programmed required to satisfy market wants

Identification of key success factors in an industry and linking them to a

16

firmrsquos strengths and weakness

Market opportunity

(a) Size of the market

(b) How well the market is served

(c) Prospective inches

(d) Marketing mix required to succeed

(e) Core competencies required

MARKETING MIX

A Marketing mix is the division of groups to make a particular product

by pricing product branding place and quality Although some

marketers[who] have added other Ps such as personnel and packaging the

fundamentals of marketing typically identifies the four Ps of the marketing mix

as referring to-

1 Product

2 Price

3 Promotion

4 Place

17

Product

A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units Intangible

products are often service based like the tourism industry amp the hotel industry

Typical examples of a mass produced tangible object are the tyre A less

obvious but ubiquitous mass produced service is a computer operating

system

18

Price

The price is the amount a customer pays for the product It is determined by a

number of factors including market share competition material costs product

identity and the customers perceived value of the product The business may

increase or decrease the price of product if other stores have the same

product

Place

Place represents the location where a product can be purchased It is often

referred to as the distribution channel It can include any physical store as well

as virtual stores on the Internet

Promotion

Promotion represents all of the communications that a marketer may

use in the marketplace Promotion has four distinct elements - advertising

public relations word of mouth and point of sale A certain amount of

crossover occurs when promotion uses the four principal elements together

which is common in film promotion Advertising covers any communication

that is paid for from television and cinema commercials radio and Internet

adverts through print media and billboards One of the most notable means of

19

promotion today is the Promotional Product as in useful items distributed to

targeted audiences with no obligation attached This category has grown each

year for the past decade while most other forms have suffered It is the only

form of advertising that targets all five senses and has the recipient thanking

the giver Public relations are where the communication is not directly paid for

and includes press releases sponsorship deals exhibitions conferences

seminars or trade fairs and events Word of mouth is any apparently informal

communication about the product by ordinary individuals satisfied customers

or people specifically engaged to create word of mouth momentum Sales

staff often plays an important role in word of mouth and Public Relations

Broadly defined optimizing the marketing mix is the primary responsibility of

marketing By offering the product with the right combination of the four Ps

marketers can improve their results and marketing effectiveness Making

small changes in the marketing mix is typically considered to be a tactical

change Making large changes in any of the four Ps can be considered

strategic For example a large change in the price say from $1900 to $3900

would be considered a strategic change in the position of the product

However a change of $131 to $13099 would be considered a tactical change

potentially related to a promotional offer

The term Marketing Mix however does not imply that the 4P elements

represent options They are not trade-offs but are fundamental marketing

issues that always need to be addressed They are the fundamental actions

that marketing requires whether determined explicitly or by default

Product Profile

The Apollo Tyres ltd Is leading company for all tyres-manufacturing company

in India and The Apollo Tyres Company manufacturing the tyres for the entire

segment (TRUCK LCV PCR FARMS OTR)

20

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 12: Marketing Strategy Opted by the Apollo Tyres1

reasons for Apollo Tyres going in for a greenfield project is its confidence to

expand its market share The focus is to increase our market share to 25 per

cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says

Bus and truck tyres account for a lions share of the industrys revenues

Since the OE market is margin-sensitive all the action is focussed on the

lucrative replacement market especially in the heavy vehicles segment

According to Satish Sharma product manager at Apollo Tyres The size of

the truck tyre replacement market is 4 lakh tyres per month and our share in

that is 25 per cent

Though the volume will be small talks have been initiated with Volvo India

Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run

for its money Its Apollo Excel tyres rolled out from its Baroda plant have

received an excellent response in the marketplace according to the company

In the OE segment MRF has been losing its hold to Bridgestone And in the

replacement market Apollo Tyres has become a major threat Apollo Tyres is

now negotiating with Hyundai Motors and Hindustan Motors for OE sales The

Kanwars want to reach top spot in the light commercial vehicles segment by

March 2001 In the two wheeler market Apollo is focussing on the motorcycle

tyres market

To boost sales Apollo Tyres has tied up with Castrol India and Kotak

Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve

their earnings The tie-up with Kotak Mahindra will facilitate sales by providing

finance for tyre purchases for the first time in India Apollo Tyres has

increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to

push sales

With all car makers planning to expand capacities the car radial market is

expected to expand rapidly According to the Apollo management the

company sells 11 lakh of the 5 lakh car radials sold per month in India today

At present the companys tyres are fitted as OE in Hindustan Motors

Ambassador and Contessa models in tractors from Tafe Punjab Tractors

and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco

11

Industry was on a smooth ride till FY08 The industry tonnage production

registered a 5-year Compounded Annual Growth Rate (CAGR) of 802

between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded

a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle

and car tyre categories grew at 1334 1227 and 1398 respectively in

this period

However as the economy in general and automobile industry in specific

slowed down in FY09 the tyre demand too came under pressure In the first

nine months of FY09 the industry managed a tonnage growth of only 219

against a growth of 738 in the same period last year The tyre offtake to the

Original Equipment Manufacturers (OEMs) declined by 617 during this

period The TampB tyre category was the worst affected with the total offtake of

these tyres declining by 001 in the first nine months Also in the face of

global slowdown and stiff Chinese competition the export market offtake

declined by 982 during this period

On the face of these demand-side pressures the tyre industry saw production

adjustments from all the major players in the last couple of months The

government too tried to provide external stimulus by effecting 6 excise duty

cut across industries (the excise duty for tyres was brought down from 14 to

10 wef December 7 2008 and then further reduced to 8 wef February

25 2009) In all the gloom one silver lining for the industry has been the

easing of the raw material prices from September 2008 onwards However

the impact of the fall in commodity prices was not visible in the nine months

results of the companies as the companies were laden with high-price

inventories The benefits of the sublime raw material prices will become

visible only in the last quarter of FY09 provided the demand too supports the

topline

The tyre industry faces competition from China in the domestic market

Imports as a percentage of total TampB tyre production stood at 10 in FY08

with more than 90 of these imports coming from China While the anti-

dumping duty is levied on the import of Chinese TampB bias tyres the industry

now wants it to be extended to Chinese TampB radial tyres to alleviate the

12

import threat In addition the industry is also keen on customs duty relief on

raw materials not producedmanufactured in the country so as to compete

with the Chinese tyres

Radialisation though in its infancy in TampB tyre category is making inroads

Most manufacturers have capex plans for radial TampB tyres with no new

capacity being added for bias tyres This indicates that the industry foresees

radialisation to take further hold in the TampB tyre category In the passenger

car segment radialisation has reached 97 up from 95 a year ago The

Industry is also banking on the customised Off The Road (OTR) tyres and

adding capacity in this category

The Indian manufacturers are looking at increasing their global footprints

Apollo is undertaking an expansion plan at its Dunlop plant in South Africa

Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It

has also entered into a manufacturing agreement with Chinese manufacturers

to sell JK-branded tyres in the export markets

13

COMPANY PROFILE

In todayrsquos world of intense competition and rapid dynamism all the companies

worldwide are tuning their focuses on the customer Suddenly the customer

had succeeded in capturing all the attention of the companies towards him so

much so that the once famous maxim ldquocustomer is the godrdquo has become so

true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of

these companies and none other then the customer has brought this about

Earlier there was a sellers market since goods and services were in short

supply and the sellers use to call the shots But ever since the advent of the

era of globalization there has been total transformation in the way the

customers being perceived Today marketers are directing their efforts in

retaining the customers and customersrsquo base Their focus has shifted towards

integrating the three elements people service and marketing

The customerrsquos importance has assumed imponderable proportions in todayrsquos

world because of the inherent value that the customers command A

customers can ldquomake or breakrdquo a company It is the responsibility of every

company to see that all its customers are equally satisfied with them for one

single dissatisfied customer will tell at least nine others about the

dissatisfaction and will spark off a chain reaction and spell doom for that

company In such scenario retention of the existing customers assumes

diabolical proportion Research has thrown light on some important aspects of

customersrsquo retention it has been proved empirically that acquiring new

customers can cost five times more than the cost involved in satisfying and

retaining current customers

In the past the customers was taken for a ride as there were not many

players in the fields not much importance was attached to product safety

quality service and product appeal The attitude of the manufacture was that

of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization

globalization and privatization (LPG) the market scenario has changed today

Today the customer has a host of defense mechanism like the customers

protection laws regulation of the government the powerful hands of the

14

organization customersrsquo courts switching to substitute or competitors that

offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been

replaced by ldquocaveat venditorrdquo

In the past after sales service was consider as a cost center Companies

were lethargic in attending to customers complaints Availability of trainee

service personal and quality genuine spare parts posed serious problems

However with the rising competition there could not be much product

differentiation as price and quality were comparable and latest technology

was to each and every company in the field Since there could not be much

differential a tangible assets the companies concentrated on the ldquointangible

assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator

Today after sales service is an important aspect of every company and it is

no more considered as a cost center but considered as a profit center Every

organization strives hard to retain its existing customers at any cost since it is

five times costly to get a new customers then to retain an existing customers

Today most of the industries use information technology to best services to

their customers

MARKETING STRATEGY

15

Strategic thinking is key to the evolution of successful marketing strategies

of APOLLO tyre This involves the following analyses

(a) Understanding markets Strategic perspective of the market requires skilful

analysis of the trend and how they affect the market size and demand for the firmrsquos

product

(b) Finding market niches Price service convenience and technology

are some of the niches in Indian market

(c) Product and service planning Analysis of the customerrsquos

promotion of the brand both of the firm and competitors besides an analysis

of the situation in which the customer uses the product

(i) Distribution Structural changes in inventory management mobile

distribution are some of the key factors that are going to affect the distribution

process in the Indian market

(ii) Managing for result With pressure on costs prices and margins

marketers will have to make effective utilization of every rupee spent in

marketing

Market opportunity of Apollo tyres-

Identification of market opportunity is critical before the management of

affirm takes a decision to launch or diversify in any product area This involves

analysis of the following

Size of the market

Marketing strategies and the extent and quality of services rendered by

other firm in the industry

Market programmed required to satisfy market wants

Identification of key success factors in an industry and linking them to a

16

firmrsquos strengths and weakness

Market opportunity

(a) Size of the market

(b) How well the market is served

(c) Prospective inches

(d) Marketing mix required to succeed

(e) Core competencies required

MARKETING MIX

A Marketing mix is the division of groups to make a particular product

by pricing product branding place and quality Although some

marketers[who] have added other Ps such as personnel and packaging the

fundamentals of marketing typically identifies the four Ps of the marketing mix

as referring to-

1 Product

2 Price

3 Promotion

4 Place

17

Product

A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units Intangible

products are often service based like the tourism industry amp the hotel industry

Typical examples of a mass produced tangible object are the tyre A less

obvious but ubiquitous mass produced service is a computer operating

system

18

Price

The price is the amount a customer pays for the product It is determined by a

number of factors including market share competition material costs product

identity and the customers perceived value of the product The business may

increase or decrease the price of product if other stores have the same

product

Place

Place represents the location where a product can be purchased It is often

referred to as the distribution channel It can include any physical store as well

as virtual stores on the Internet

Promotion

Promotion represents all of the communications that a marketer may

use in the marketplace Promotion has four distinct elements - advertising

public relations word of mouth and point of sale A certain amount of

crossover occurs when promotion uses the four principal elements together

which is common in film promotion Advertising covers any communication

that is paid for from television and cinema commercials radio and Internet

adverts through print media and billboards One of the most notable means of

19

promotion today is the Promotional Product as in useful items distributed to

targeted audiences with no obligation attached This category has grown each

year for the past decade while most other forms have suffered It is the only

form of advertising that targets all five senses and has the recipient thanking

the giver Public relations are where the communication is not directly paid for

and includes press releases sponsorship deals exhibitions conferences

seminars or trade fairs and events Word of mouth is any apparently informal

communication about the product by ordinary individuals satisfied customers

or people specifically engaged to create word of mouth momentum Sales

staff often plays an important role in word of mouth and Public Relations

Broadly defined optimizing the marketing mix is the primary responsibility of

marketing By offering the product with the right combination of the four Ps

marketers can improve their results and marketing effectiveness Making

small changes in the marketing mix is typically considered to be a tactical

change Making large changes in any of the four Ps can be considered

strategic For example a large change in the price say from $1900 to $3900

would be considered a strategic change in the position of the product

However a change of $131 to $13099 would be considered a tactical change

potentially related to a promotional offer

The term Marketing Mix however does not imply that the 4P elements

represent options They are not trade-offs but are fundamental marketing

issues that always need to be addressed They are the fundamental actions

that marketing requires whether determined explicitly or by default

Product Profile

The Apollo Tyres ltd Is leading company for all tyres-manufacturing company

in India and The Apollo Tyres Company manufacturing the tyres for the entire

segment (TRUCK LCV PCR FARMS OTR)

20

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 13: Marketing Strategy Opted by the Apollo Tyres1

Industry was on a smooth ride till FY08 The industry tonnage production

registered a 5-year Compounded Annual Growth Rate (CAGR) of 802

between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded

a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle

and car tyre categories grew at 1334 1227 and 1398 respectively in

this period

However as the economy in general and automobile industry in specific

slowed down in FY09 the tyre demand too came under pressure In the first

nine months of FY09 the industry managed a tonnage growth of only 219

against a growth of 738 in the same period last year The tyre offtake to the

Original Equipment Manufacturers (OEMs) declined by 617 during this

period The TampB tyre category was the worst affected with the total offtake of

these tyres declining by 001 in the first nine months Also in the face of

global slowdown and stiff Chinese competition the export market offtake

declined by 982 during this period

On the face of these demand-side pressures the tyre industry saw production

adjustments from all the major players in the last couple of months The

government too tried to provide external stimulus by effecting 6 excise duty

cut across industries (the excise duty for tyres was brought down from 14 to

10 wef December 7 2008 and then further reduced to 8 wef February

25 2009) In all the gloom one silver lining for the industry has been the

easing of the raw material prices from September 2008 onwards However

the impact of the fall in commodity prices was not visible in the nine months

results of the companies as the companies were laden with high-price

inventories The benefits of the sublime raw material prices will become

visible only in the last quarter of FY09 provided the demand too supports the

topline

The tyre industry faces competition from China in the domestic market

Imports as a percentage of total TampB tyre production stood at 10 in FY08

with more than 90 of these imports coming from China While the anti-

dumping duty is levied on the import of Chinese TampB bias tyres the industry

now wants it to be extended to Chinese TampB radial tyres to alleviate the

12

import threat In addition the industry is also keen on customs duty relief on

raw materials not producedmanufactured in the country so as to compete

with the Chinese tyres

Radialisation though in its infancy in TampB tyre category is making inroads

Most manufacturers have capex plans for radial TampB tyres with no new

capacity being added for bias tyres This indicates that the industry foresees

radialisation to take further hold in the TampB tyre category In the passenger

car segment radialisation has reached 97 up from 95 a year ago The

Industry is also banking on the customised Off The Road (OTR) tyres and

adding capacity in this category

The Indian manufacturers are looking at increasing their global footprints

Apollo is undertaking an expansion plan at its Dunlop plant in South Africa

Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It

has also entered into a manufacturing agreement with Chinese manufacturers

to sell JK-branded tyres in the export markets

13

COMPANY PROFILE

In todayrsquos world of intense competition and rapid dynamism all the companies

worldwide are tuning their focuses on the customer Suddenly the customer

had succeeded in capturing all the attention of the companies towards him so

much so that the once famous maxim ldquocustomer is the godrdquo has become so

true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of

these companies and none other then the customer has brought this about

Earlier there was a sellers market since goods and services were in short

supply and the sellers use to call the shots But ever since the advent of the

era of globalization there has been total transformation in the way the

customers being perceived Today marketers are directing their efforts in

retaining the customers and customersrsquo base Their focus has shifted towards

integrating the three elements people service and marketing

The customerrsquos importance has assumed imponderable proportions in todayrsquos

world because of the inherent value that the customers command A

customers can ldquomake or breakrdquo a company It is the responsibility of every

company to see that all its customers are equally satisfied with them for one

single dissatisfied customer will tell at least nine others about the

dissatisfaction and will spark off a chain reaction and spell doom for that

company In such scenario retention of the existing customers assumes

diabolical proportion Research has thrown light on some important aspects of

customersrsquo retention it has been proved empirically that acquiring new

customers can cost five times more than the cost involved in satisfying and

retaining current customers

In the past the customers was taken for a ride as there were not many

players in the fields not much importance was attached to product safety

quality service and product appeal The attitude of the manufacture was that

of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization

globalization and privatization (LPG) the market scenario has changed today

Today the customer has a host of defense mechanism like the customers

protection laws regulation of the government the powerful hands of the

14

organization customersrsquo courts switching to substitute or competitors that

offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been

replaced by ldquocaveat venditorrdquo

In the past after sales service was consider as a cost center Companies

were lethargic in attending to customers complaints Availability of trainee

service personal and quality genuine spare parts posed serious problems

However with the rising competition there could not be much product

differentiation as price and quality were comparable and latest technology

was to each and every company in the field Since there could not be much

differential a tangible assets the companies concentrated on the ldquointangible

assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator

Today after sales service is an important aspect of every company and it is

no more considered as a cost center but considered as a profit center Every

organization strives hard to retain its existing customers at any cost since it is

five times costly to get a new customers then to retain an existing customers

Today most of the industries use information technology to best services to

their customers

MARKETING STRATEGY

15

Strategic thinking is key to the evolution of successful marketing strategies

of APOLLO tyre This involves the following analyses

(a) Understanding markets Strategic perspective of the market requires skilful

analysis of the trend and how they affect the market size and demand for the firmrsquos

product

(b) Finding market niches Price service convenience and technology

are some of the niches in Indian market

(c) Product and service planning Analysis of the customerrsquos

promotion of the brand both of the firm and competitors besides an analysis

of the situation in which the customer uses the product

(i) Distribution Structural changes in inventory management mobile

distribution are some of the key factors that are going to affect the distribution

process in the Indian market

(ii) Managing for result With pressure on costs prices and margins

marketers will have to make effective utilization of every rupee spent in

marketing

Market opportunity of Apollo tyres-

Identification of market opportunity is critical before the management of

affirm takes a decision to launch or diversify in any product area This involves

analysis of the following

Size of the market

Marketing strategies and the extent and quality of services rendered by

other firm in the industry

Market programmed required to satisfy market wants

Identification of key success factors in an industry and linking them to a

16

firmrsquos strengths and weakness

Market opportunity

(a) Size of the market

(b) How well the market is served

(c) Prospective inches

(d) Marketing mix required to succeed

(e) Core competencies required

MARKETING MIX

A Marketing mix is the division of groups to make a particular product

by pricing product branding place and quality Although some

marketers[who] have added other Ps such as personnel and packaging the

fundamentals of marketing typically identifies the four Ps of the marketing mix

as referring to-

1 Product

2 Price

3 Promotion

4 Place

17

Product

A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units Intangible

products are often service based like the tourism industry amp the hotel industry

Typical examples of a mass produced tangible object are the tyre A less

obvious but ubiquitous mass produced service is a computer operating

system

18

Price

The price is the amount a customer pays for the product It is determined by a

number of factors including market share competition material costs product

identity and the customers perceived value of the product The business may

increase or decrease the price of product if other stores have the same

product

Place

Place represents the location where a product can be purchased It is often

referred to as the distribution channel It can include any physical store as well

as virtual stores on the Internet

Promotion

Promotion represents all of the communications that a marketer may

use in the marketplace Promotion has four distinct elements - advertising

public relations word of mouth and point of sale A certain amount of

crossover occurs when promotion uses the four principal elements together

which is common in film promotion Advertising covers any communication

that is paid for from television and cinema commercials radio and Internet

adverts through print media and billboards One of the most notable means of

19

promotion today is the Promotional Product as in useful items distributed to

targeted audiences with no obligation attached This category has grown each

year for the past decade while most other forms have suffered It is the only

form of advertising that targets all five senses and has the recipient thanking

the giver Public relations are where the communication is not directly paid for

and includes press releases sponsorship deals exhibitions conferences

seminars or trade fairs and events Word of mouth is any apparently informal

communication about the product by ordinary individuals satisfied customers

or people specifically engaged to create word of mouth momentum Sales

staff often plays an important role in word of mouth and Public Relations

Broadly defined optimizing the marketing mix is the primary responsibility of

marketing By offering the product with the right combination of the four Ps

marketers can improve their results and marketing effectiveness Making

small changes in the marketing mix is typically considered to be a tactical

change Making large changes in any of the four Ps can be considered

strategic For example a large change in the price say from $1900 to $3900

would be considered a strategic change in the position of the product

However a change of $131 to $13099 would be considered a tactical change

potentially related to a promotional offer

The term Marketing Mix however does not imply that the 4P elements

represent options They are not trade-offs but are fundamental marketing

issues that always need to be addressed They are the fundamental actions

that marketing requires whether determined explicitly or by default

Product Profile

The Apollo Tyres ltd Is leading company for all tyres-manufacturing company

in India and The Apollo Tyres Company manufacturing the tyres for the entire

segment (TRUCK LCV PCR FARMS OTR)

20

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 14: Marketing Strategy Opted by the Apollo Tyres1

import threat In addition the industry is also keen on customs duty relief on

raw materials not producedmanufactured in the country so as to compete

with the Chinese tyres

Radialisation though in its infancy in TampB tyre category is making inroads

Most manufacturers have capex plans for radial TampB tyres with no new

capacity being added for bias tyres This indicates that the industry foresees

radialisation to take further hold in the TampB tyre category In the passenger

car segment radialisation has reached 97 up from 95 a year ago The

Industry is also banking on the customised Off The Road (OTR) tyres and

adding capacity in this category

The Indian manufacturers are looking at increasing their global footprints

Apollo is undertaking an expansion plan at its Dunlop plant in South Africa

Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It

has also entered into a manufacturing agreement with Chinese manufacturers

to sell JK-branded tyres in the export markets

13

COMPANY PROFILE

In todayrsquos world of intense competition and rapid dynamism all the companies

worldwide are tuning their focuses on the customer Suddenly the customer

had succeeded in capturing all the attention of the companies towards him so

much so that the once famous maxim ldquocustomer is the godrdquo has become so

true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of

these companies and none other then the customer has brought this about

Earlier there was a sellers market since goods and services were in short

supply and the sellers use to call the shots But ever since the advent of the

era of globalization there has been total transformation in the way the

customers being perceived Today marketers are directing their efforts in

retaining the customers and customersrsquo base Their focus has shifted towards

integrating the three elements people service and marketing

The customerrsquos importance has assumed imponderable proportions in todayrsquos

world because of the inherent value that the customers command A

customers can ldquomake or breakrdquo a company It is the responsibility of every

company to see that all its customers are equally satisfied with them for one

single dissatisfied customer will tell at least nine others about the

dissatisfaction and will spark off a chain reaction and spell doom for that

company In such scenario retention of the existing customers assumes

diabolical proportion Research has thrown light on some important aspects of

customersrsquo retention it has been proved empirically that acquiring new

customers can cost five times more than the cost involved in satisfying and

retaining current customers

In the past the customers was taken for a ride as there were not many

players in the fields not much importance was attached to product safety

quality service and product appeal The attitude of the manufacture was that

of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization

globalization and privatization (LPG) the market scenario has changed today

Today the customer has a host of defense mechanism like the customers

protection laws regulation of the government the powerful hands of the

14

organization customersrsquo courts switching to substitute or competitors that

offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been

replaced by ldquocaveat venditorrdquo

In the past after sales service was consider as a cost center Companies

were lethargic in attending to customers complaints Availability of trainee

service personal and quality genuine spare parts posed serious problems

However with the rising competition there could not be much product

differentiation as price and quality were comparable and latest technology

was to each and every company in the field Since there could not be much

differential a tangible assets the companies concentrated on the ldquointangible

assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator

Today after sales service is an important aspect of every company and it is

no more considered as a cost center but considered as a profit center Every

organization strives hard to retain its existing customers at any cost since it is

five times costly to get a new customers then to retain an existing customers

Today most of the industries use information technology to best services to

their customers

MARKETING STRATEGY

15

Strategic thinking is key to the evolution of successful marketing strategies

of APOLLO tyre This involves the following analyses

(a) Understanding markets Strategic perspective of the market requires skilful

analysis of the trend and how they affect the market size and demand for the firmrsquos

product

(b) Finding market niches Price service convenience and technology

are some of the niches in Indian market

(c) Product and service planning Analysis of the customerrsquos

promotion of the brand both of the firm and competitors besides an analysis

of the situation in which the customer uses the product

(i) Distribution Structural changes in inventory management mobile

distribution are some of the key factors that are going to affect the distribution

process in the Indian market

(ii) Managing for result With pressure on costs prices and margins

marketers will have to make effective utilization of every rupee spent in

marketing

Market opportunity of Apollo tyres-

Identification of market opportunity is critical before the management of

affirm takes a decision to launch or diversify in any product area This involves

analysis of the following

Size of the market

Marketing strategies and the extent and quality of services rendered by

other firm in the industry

Market programmed required to satisfy market wants

Identification of key success factors in an industry and linking them to a

16

firmrsquos strengths and weakness

Market opportunity

(a) Size of the market

(b) How well the market is served

(c) Prospective inches

(d) Marketing mix required to succeed

(e) Core competencies required

MARKETING MIX

A Marketing mix is the division of groups to make a particular product

by pricing product branding place and quality Although some

marketers[who] have added other Ps such as personnel and packaging the

fundamentals of marketing typically identifies the four Ps of the marketing mix

as referring to-

1 Product

2 Price

3 Promotion

4 Place

17

Product

A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units Intangible

products are often service based like the tourism industry amp the hotel industry

Typical examples of a mass produced tangible object are the tyre A less

obvious but ubiquitous mass produced service is a computer operating

system

18

Price

The price is the amount a customer pays for the product It is determined by a

number of factors including market share competition material costs product

identity and the customers perceived value of the product The business may

increase or decrease the price of product if other stores have the same

product

Place

Place represents the location where a product can be purchased It is often

referred to as the distribution channel It can include any physical store as well

as virtual stores on the Internet

Promotion

Promotion represents all of the communications that a marketer may

use in the marketplace Promotion has four distinct elements - advertising

public relations word of mouth and point of sale A certain amount of

crossover occurs when promotion uses the four principal elements together

which is common in film promotion Advertising covers any communication

that is paid for from television and cinema commercials radio and Internet

adverts through print media and billboards One of the most notable means of

19

promotion today is the Promotional Product as in useful items distributed to

targeted audiences with no obligation attached This category has grown each

year for the past decade while most other forms have suffered It is the only

form of advertising that targets all five senses and has the recipient thanking

the giver Public relations are where the communication is not directly paid for

and includes press releases sponsorship deals exhibitions conferences

seminars or trade fairs and events Word of mouth is any apparently informal

communication about the product by ordinary individuals satisfied customers

or people specifically engaged to create word of mouth momentum Sales

staff often plays an important role in word of mouth and Public Relations

Broadly defined optimizing the marketing mix is the primary responsibility of

marketing By offering the product with the right combination of the four Ps

marketers can improve their results and marketing effectiveness Making

small changes in the marketing mix is typically considered to be a tactical

change Making large changes in any of the four Ps can be considered

strategic For example a large change in the price say from $1900 to $3900

would be considered a strategic change in the position of the product

However a change of $131 to $13099 would be considered a tactical change

potentially related to a promotional offer

The term Marketing Mix however does not imply that the 4P elements

represent options They are not trade-offs but are fundamental marketing

issues that always need to be addressed They are the fundamental actions

that marketing requires whether determined explicitly or by default

Product Profile

The Apollo Tyres ltd Is leading company for all tyres-manufacturing company

in India and The Apollo Tyres Company manufacturing the tyres for the entire

segment (TRUCK LCV PCR FARMS OTR)

20

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 15: Marketing Strategy Opted by the Apollo Tyres1

COMPANY PROFILE

In todayrsquos world of intense competition and rapid dynamism all the companies

worldwide are tuning their focuses on the customer Suddenly the customer

had succeeded in capturing all the attention of the companies towards him so

much so that the once famous maxim ldquocustomer is the godrdquo has become so

true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of

these companies and none other then the customer has brought this about

Earlier there was a sellers market since goods and services were in short

supply and the sellers use to call the shots But ever since the advent of the

era of globalization there has been total transformation in the way the

customers being perceived Today marketers are directing their efforts in

retaining the customers and customersrsquo base Their focus has shifted towards

integrating the three elements people service and marketing

The customerrsquos importance has assumed imponderable proportions in todayrsquos

world because of the inherent value that the customers command A

customers can ldquomake or breakrdquo a company It is the responsibility of every

company to see that all its customers are equally satisfied with them for one

single dissatisfied customer will tell at least nine others about the

dissatisfaction and will spark off a chain reaction and spell doom for that

company In such scenario retention of the existing customers assumes

diabolical proportion Research has thrown light on some important aspects of

customersrsquo retention it has been proved empirically that acquiring new

customers can cost five times more than the cost involved in satisfying and

retaining current customers

In the past the customers was taken for a ride as there were not many

players in the fields not much importance was attached to product safety

quality service and product appeal The attitude of the manufacture was that

of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization

globalization and privatization (LPG) the market scenario has changed today

Today the customer has a host of defense mechanism like the customers

protection laws regulation of the government the powerful hands of the

14

organization customersrsquo courts switching to substitute or competitors that

offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been

replaced by ldquocaveat venditorrdquo

In the past after sales service was consider as a cost center Companies

were lethargic in attending to customers complaints Availability of trainee

service personal and quality genuine spare parts posed serious problems

However with the rising competition there could not be much product

differentiation as price and quality were comparable and latest technology

was to each and every company in the field Since there could not be much

differential a tangible assets the companies concentrated on the ldquointangible

assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator

Today after sales service is an important aspect of every company and it is

no more considered as a cost center but considered as a profit center Every

organization strives hard to retain its existing customers at any cost since it is

five times costly to get a new customers then to retain an existing customers

Today most of the industries use information technology to best services to

their customers

MARKETING STRATEGY

15

Strategic thinking is key to the evolution of successful marketing strategies

of APOLLO tyre This involves the following analyses

(a) Understanding markets Strategic perspective of the market requires skilful

analysis of the trend and how they affect the market size and demand for the firmrsquos

product

(b) Finding market niches Price service convenience and technology

are some of the niches in Indian market

(c) Product and service planning Analysis of the customerrsquos

promotion of the brand both of the firm and competitors besides an analysis

of the situation in which the customer uses the product

(i) Distribution Structural changes in inventory management mobile

distribution are some of the key factors that are going to affect the distribution

process in the Indian market

(ii) Managing for result With pressure on costs prices and margins

marketers will have to make effective utilization of every rupee spent in

marketing

Market opportunity of Apollo tyres-

Identification of market opportunity is critical before the management of

affirm takes a decision to launch or diversify in any product area This involves

analysis of the following

Size of the market

Marketing strategies and the extent and quality of services rendered by

other firm in the industry

Market programmed required to satisfy market wants

Identification of key success factors in an industry and linking them to a

16

firmrsquos strengths and weakness

Market opportunity

(a) Size of the market

(b) How well the market is served

(c) Prospective inches

(d) Marketing mix required to succeed

(e) Core competencies required

MARKETING MIX

A Marketing mix is the division of groups to make a particular product

by pricing product branding place and quality Although some

marketers[who] have added other Ps such as personnel and packaging the

fundamentals of marketing typically identifies the four Ps of the marketing mix

as referring to-

1 Product

2 Price

3 Promotion

4 Place

17

Product

A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units Intangible

products are often service based like the tourism industry amp the hotel industry

Typical examples of a mass produced tangible object are the tyre A less

obvious but ubiquitous mass produced service is a computer operating

system

18

Price

The price is the amount a customer pays for the product It is determined by a

number of factors including market share competition material costs product

identity and the customers perceived value of the product The business may

increase or decrease the price of product if other stores have the same

product

Place

Place represents the location where a product can be purchased It is often

referred to as the distribution channel It can include any physical store as well

as virtual stores on the Internet

Promotion

Promotion represents all of the communications that a marketer may

use in the marketplace Promotion has four distinct elements - advertising

public relations word of mouth and point of sale A certain amount of

crossover occurs when promotion uses the four principal elements together

which is common in film promotion Advertising covers any communication

that is paid for from television and cinema commercials radio and Internet

adverts through print media and billboards One of the most notable means of

19

promotion today is the Promotional Product as in useful items distributed to

targeted audiences with no obligation attached This category has grown each

year for the past decade while most other forms have suffered It is the only

form of advertising that targets all five senses and has the recipient thanking

the giver Public relations are where the communication is not directly paid for

and includes press releases sponsorship deals exhibitions conferences

seminars or trade fairs and events Word of mouth is any apparently informal

communication about the product by ordinary individuals satisfied customers

or people specifically engaged to create word of mouth momentum Sales

staff often plays an important role in word of mouth and Public Relations

Broadly defined optimizing the marketing mix is the primary responsibility of

marketing By offering the product with the right combination of the four Ps

marketers can improve their results and marketing effectiveness Making

small changes in the marketing mix is typically considered to be a tactical

change Making large changes in any of the four Ps can be considered

strategic For example a large change in the price say from $1900 to $3900

would be considered a strategic change in the position of the product

However a change of $131 to $13099 would be considered a tactical change

potentially related to a promotional offer

The term Marketing Mix however does not imply that the 4P elements

represent options They are not trade-offs but are fundamental marketing

issues that always need to be addressed They are the fundamental actions

that marketing requires whether determined explicitly or by default

Product Profile

The Apollo Tyres ltd Is leading company for all tyres-manufacturing company

in India and The Apollo Tyres Company manufacturing the tyres for the entire

segment (TRUCK LCV PCR FARMS OTR)

20

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 16: Marketing Strategy Opted by the Apollo Tyres1

organization customersrsquo courts switching to substitute or competitors that

offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been

replaced by ldquocaveat venditorrdquo

In the past after sales service was consider as a cost center Companies

were lethargic in attending to customers complaints Availability of trainee

service personal and quality genuine spare parts posed serious problems

However with the rising competition there could not be much product

differentiation as price and quality were comparable and latest technology

was to each and every company in the field Since there could not be much

differential a tangible assets the companies concentrated on the ldquointangible

assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator

Today after sales service is an important aspect of every company and it is

no more considered as a cost center but considered as a profit center Every

organization strives hard to retain its existing customers at any cost since it is

five times costly to get a new customers then to retain an existing customers

Today most of the industries use information technology to best services to

their customers

MARKETING STRATEGY

15

Strategic thinking is key to the evolution of successful marketing strategies

of APOLLO tyre This involves the following analyses

(a) Understanding markets Strategic perspective of the market requires skilful

analysis of the trend and how they affect the market size and demand for the firmrsquos

product

(b) Finding market niches Price service convenience and technology

are some of the niches in Indian market

(c) Product and service planning Analysis of the customerrsquos

promotion of the brand both of the firm and competitors besides an analysis

of the situation in which the customer uses the product

(i) Distribution Structural changes in inventory management mobile

distribution are some of the key factors that are going to affect the distribution

process in the Indian market

(ii) Managing for result With pressure on costs prices and margins

marketers will have to make effective utilization of every rupee spent in

marketing

Market opportunity of Apollo tyres-

Identification of market opportunity is critical before the management of

affirm takes a decision to launch or diversify in any product area This involves

analysis of the following

Size of the market

Marketing strategies and the extent and quality of services rendered by

other firm in the industry

Market programmed required to satisfy market wants

Identification of key success factors in an industry and linking them to a

16

firmrsquos strengths and weakness

Market opportunity

(a) Size of the market

(b) How well the market is served

(c) Prospective inches

(d) Marketing mix required to succeed

(e) Core competencies required

MARKETING MIX

A Marketing mix is the division of groups to make a particular product

by pricing product branding place and quality Although some

marketers[who] have added other Ps such as personnel and packaging the

fundamentals of marketing typically identifies the four Ps of the marketing mix

as referring to-

1 Product

2 Price

3 Promotion

4 Place

17

Product

A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units Intangible

products are often service based like the tourism industry amp the hotel industry

Typical examples of a mass produced tangible object are the tyre A less

obvious but ubiquitous mass produced service is a computer operating

system

18

Price

The price is the amount a customer pays for the product It is determined by a

number of factors including market share competition material costs product

identity and the customers perceived value of the product The business may

increase or decrease the price of product if other stores have the same

product

Place

Place represents the location where a product can be purchased It is often

referred to as the distribution channel It can include any physical store as well

as virtual stores on the Internet

Promotion

Promotion represents all of the communications that a marketer may

use in the marketplace Promotion has four distinct elements - advertising

public relations word of mouth and point of sale A certain amount of

crossover occurs when promotion uses the four principal elements together

which is common in film promotion Advertising covers any communication

that is paid for from television and cinema commercials radio and Internet

adverts through print media and billboards One of the most notable means of

19

promotion today is the Promotional Product as in useful items distributed to

targeted audiences with no obligation attached This category has grown each

year for the past decade while most other forms have suffered It is the only

form of advertising that targets all five senses and has the recipient thanking

the giver Public relations are where the communication is not directly paid for

and includes press releases sponsorship deals exhibitions conferences

seminars or trade fairs and events Word of mouth is any apparently informal

communication about the product by ordinary individuals satisfied customers

or people specifically engaged to create word of mouth momentum Sales

staff often plays an important role in word of mouth and Public Relations

Broadly defined optimizing the marketing mix is the primary responsibility of

marketing By offering the product with the right combination of the four Ps

marketers can improve their results and marketing effectiveness Making

small changes in the marketing mix is typically considered to be a tactical

change Making large changes in any of the four Ps can be considered

strategic For example a large change in the price say from $1900 to $3900

would be considered a strategic change in the position of the product

However a change of $131 to $13099 would be considered a tactical change

potentially related to a promotional offer

The term Marketing Mix however does not imply that the 4P elements

represent options They are not trade-offs but are fundamental marketing

issues that always need to be addressed They are the fundamental actions

that marketing requires whether determined explicitly or by default

Product Profile

The Apollo Tyres ltd Is leading company for all tyres-manufacturing company

in India and The Apollo Tyres Company manufacturing the tyres for the entire

segment (TRUCK LCV PCR FARMS OTR)

20

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 17: Marketing Strategy Opted by the Apollo Tyres1

Strategic thinking is key to the evolution of successful marketing strategies

of APOLLO tyre This involves the following analyses

(a) Understanding markets Strategic perspective of the market requires skilful

analysis of the trend and how they affect the market size and demand for the firmrsquos

product

(b) Finding market niches Price service convenience and technology

are some of the niches in Indian market

(c) Product and service planning Analysis of the customerrsquos

promotion of the brand both of the firm and competitors besides an analysis

of the situation in which the customer uses the product

(i) Distribution Structural changes in inventory management mobile

distribution are some of the key factors that are going to affect the distribution

process in the Indian market

(ii) Managing for result With pressure on costs prices and margins

marketers will have to make effective utilization of every rupee spent in

marketing

Market opportunity of Apollo tyres-

Identification of market opportunity is critical before the management of

affirm takes a decision to launch or diversify in any product area This involves

analysis of the following

Size of the market

Marketing strategies and the extent and quality of services rendered by

other firm in the industry

Market programmed required to satisfy market wants

Identification of key success factors in an industry and linking them to a

16

firmrsquos strengths and weakness

Market opportunity

(a) Size of the market

(b) How well the market is served

(c) Prospective inches

(d) Marketing mix required to succeed

(e) Core competencies required

MARKETING MIX

A Marketing mix is the division of groups to make a particular product

by pricing product branding place and quality Although some

marketers[who] have added other Ps such as personnel and packaging the

fundamentals of marketing typically identifies the four Ps of the marketing mix

as referring to-

1 Product

2 Price

3 Promotion

4 Place

17

Product

A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units Intangible

products are often service based like the tourism industry amp the hotel industry

Typical examples of a mass produced tangible object are the tyre A less

obvious but ubiquitous mass produced service is a computer operating

system

18

Price

The price is the amount a customer pays for the product It is determined by a

number of factors including market share competition material costs product

identity and the customers perceived value of the product The business may

increase or decrease the price of product if other stores have the same

product

Place

Place represents the location where a product can be purchased It is often

referred to as the distribution channel It can include any physical store as well

as virtual stores on the Internet

Promotion

Promotion represents all of the communications that a marketer may

use in the marketplace Promotion has four distinct elements - advertising

public relations word of mouth and point of sale A certain amount of

crossover occurs when promotion uses the four principal elements together

which is common in film promotion Advertising covers any communication

that is paid for from television and cinema commercials radio and Internet

adverts through print media and billboards One of the most notable means of

19

promotion today is the Promotional Product as in useful items distributed to

targeted audiences with no obligation attached This category has grown each

year for the past decade while most other forms have suffered It is the only

form of advertising that targets all five senses and has the recipient thanking

the giver Public relations are where the communication is not directly paid for

and includes press releases sponsorship deals exhibitions conferences

seminars or trade fairs and events Word of mouth is any apparently informal

communication about the product by ordinary individuals satisfied customers

or people specifically engaged to create word of mouth momentum Sales

staff often plays an important role in word of mouth and Public Relations

Broadly defined optimizing the marketing mix is the primary responsibility of

marketing By offering the product with the right combination of the four Ps

marketers can improve their results and marketing effectiveness Making

small changes in the marketing mix is typically considered to be a tactical

change Making large changes in any of the four Ps can be considered

strategic For example a large change in the price say from $1900 to $3900

would be considered a strategic change in the position of the product

However a change of $131 to $13099 would be considered a tactical change

potentially related to a promotional offer

The term Marketing Mix however does not imply that the 4P elements

represent options They are not trade-offs but are fundamental marketing

issues that always need to be addressed They are the fundamental actions

that marketing requires whether determined explicitly or by default

Product Profile

The Apollo Tyres ltd Is leading company for all tyres-manufacturing company

in India and The Apollo Tyres Company manufacturing the tyres for the entire

segment (TRUCK LCV PCR FARMS OTR)

20

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 18: Marketing Strategy Opted by the Apollo Tyres1

firmrsquos strengths and weakness

Market opportunity

(a) Size of the market

(b) How well the market is served

(c) Prospective inches

(d) Marketing mix required to succeed

(e) Core competencies required

MARKETING MIX

A Marketing mix is the division of groups to make a particular product

by pricing product branding place and quality Although some

marketers[who] have added other Ps such as personnel and packaging the

fundamentals of marketing typically identifies the four Ps of the marketing mix

as referring to-

1 Product

2 Price

3 Promotion

4 Place

17

Product

A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units Intangible

products are often service based like the tourism industry amp the hotel industry

Typical examples of a mass produced tangible object are the tyre A less

obvious but ubiquitous mass produced service is a computer operating

system

18

Price

The price is the amount a customer pays for the product It is determined by a

number of factors including market share competition material costs product

identity and the customers perceived value of the product The business may

increase or decrease the price of product if other stores have the same

product

Place

Place represents the location where a product can be purchased It is often

referred to as the distribution channel It can include any physical store as well

as virtual stores on the Internet

Promotion

Promotion represents all of the communications that a marketer may

use in the marketplace Promotion has four distinct elements - advertising

public relations word of mouth and point of sale A certain amount of

crossover occurs when promotion uses the four principal elements together

which is common in film promotion Advertising covers any communication

that is paid for from television and cinema commercials radio and Internet

adverts through print media and billboards One of the most notable means of

19

promotion today is the Promotional Product as in useful items distributed to

targeted audiences with no obligation attached This category has grown each

year for the past decade while most other forms have suffered It is the only

form of advertising that targets all five senses and has the recipient thanking

the giver Public relations are where the communication is not directly paid for

and includes press releases sponsorship deals exhibitions conferences

seminars or trade fairs and events Word of mouth is any apparently informal

communication about the product by ordinary individuals satisfied customers

or people specifically engaged to create word of mouth momentum Sales

staff often plays an important role in word of mouth and Public Relations

Broadly defined optimizing the marketing mix is the primary responsibility of

marketing By offering the product with the right combination of the four Ps

marketers can improve their results and marketing effectiveness Making

small changes in the marketing mix is typically considered to be a tactical

change Making large changes in any of the four Ps can be considered

strategic For example a large change in the price say from $1900 to $3900

would be considered a strategic change in the position of the product

However a change of $131 to $13099 would be considered a tactical change

potentially related to a promotional offer

The term Marketing Mix however does not imply that the 4P elements

represent options They are not trade-offs but are fundamental marketing

issues that always need to be addressed They are the fundamental actions

that marketing requires whether determined explicitly or by default

Product Profile

The Apollo Tyres ltd Is leading company for all tyres-manufacturing company

in India and The Apollo Tyres Company manufacturing the tyres for the entire

segment (TRUCK LCV PCR FARMS OTR)

20

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 19: Marketing Strategy Opted by the Apollo Tyres1

Product

A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units Intangible

products are often service based like the tourism industry amp the hotel industry

Typical examples of a mass produced tangible object are the tyre A less

obvious but ubiquitous mass produced service is a computer operating

system

18

Price

The price is the amount a customer pays for the product It is determined by a

number of factors including market share competition material costs product

identity and the customers perceived value of the product The business may

increase or decrease the price of product if other stores have the same

product

Place

Place represents the location where a product can be purchased It is often

referred to as the distribution channel It can include any physical store as well

as virtual stores on the Internet

Promotion

Promotion represents all of the communications that a marketer may

use in the marketplace Promotion has four distinct elements - advertising

public relations word of mouth and point of sale A certain amount of

crossover occurs when promotion uses the four principal elements together

which is common in film promotion Advertising covers any communication

that is paid for from television and cinema commercials radio and Internet

adverts through print media and billboards One of the most notable means of

19

promotion today is the Promotional Product as in useful items distributed to

targeted audiences with no obligation attached This category has grown each

year for the past decade while most other forms have suffered It is the only

form of advertising that targets all five senses and has the recipient thanking

the giver Public relations are where the communication is not directly paid for

and includes press releases sponsorship deals exhibitions conferences

seminars or trade fairs and events Word of mouth is any apparently informal

communication about the product by ordinary individuals satisfied customers

or people specifically engaged to create word of mouth momentum Sales

staff often plays an important role in word of mouth and Public Relations

Broadly defined optimizing the marketing mix is the primary responsibility of

marketing By offering the product with the right combination of the four Ps

marketers can improve their results and marketing effectiveness Making

small changes in the marketing mix is typically considered to be a tactical

change Making large changes in any of the four Ps can be considered

strategic For example a large change in the price say from $1900 to $3900

would be considered a strategic change in the position of the product

However a change of $131 to $13099 would be considered a tactical change

potentially related to a promotional offer

The term Marketing Mix however does not imply that the 4P elements

represent options They are not trade-offs but are fundamental marketing

issues that always need to be addressed They are the fundamental actions

that marketing requires whether determined explicitly or by default

Product Profile

The Apollo Tyres ltd Is leading company for all tyres-manufacturing company

in India and The Apollo Tyres Company manufacturing the tyres for the entire

segment (TRUCK LCV PCR FARMS OTR)

20

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 20: Marketing Strategy Opted by the Apollo Tyres1

Price

The price is the amount a customer pays for the product It is determined by a

number of factors including market share competition material costs product

identity and the customers perceived value of the product The business may

increase or decrease the price of product if other stores have the same

product

Place

Place represents the location where a product can be purchased It is often

referred to as the distribution channel It can include any physical store as well

as virtual stores on the Internet

Promotion

Promotion represents all of the communications that a marketer may

use in the marketplace Promotion has four distinct elements - advertising

public relations word of mouth and point of sale A certain amount of

crossover occurs when promotion uses the four principal elements together

which is common in film promotion Advertising covers any communication

that is paid for from television and cinema commercials radio and Internet

adverts through print media and billboards One of the most notable means of

19

promotion today is the Promotional Product as in useful items distributed to

targeted audiences with no obligation attached This category has grown each

year for the past decade while most other forms have suffered It is the only

form of advertising that targets all five senses and has the recipient thanking

the giver Public relations are where the communication is not directly paid for

and includes press releases sponsorship deals exhibitions conferences

seminars or trade fairs and events Word of mouth is any apparently informal

communication about the product by ordinary individuals satisfied customers

or people specifically engaged to create word of mouth momentum Sales

staff often plays an important role in word of mouth and Public Relations

Broadly defined optimizing the marketing mix is the primary responsibility of

marketing By offering the product with the right combination of the four Ps

marketers can improve their results and marketing effectiveness Making

small changes in the marketing mix is typically considered to be a tactical

change Making large changes in any of the four Ps can be considered

strategic For example a large change in the price say from $1900 to $3900

would be considered a strategic change in the position of the product

However a change of $131 to $13099 would be considered a tactical change

potentially related to a promotional offer

The term Marketing Mix however does not imply that the 4P elements

represent options They are not trade-offs but are fundamental marketing

issues that always need to be addressed They are the fundamental actions

that marketing requires whether determined explicitly or by default

Product Profile

The Apollo Tyres ltd Is leading company for all tyres-manufacturing company

in India and The Apollo Tyres Company manufacturing the tyres for the entire

segment (TRUCK LCV PCR FARMS OTR)

20

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 21: Marketing Strategy Opted by the Apollo Tyres1

promotion today is the Promotional Product as in useful items distributed to

targeted audiences with no obligation attached This category has grown each

year for the past decade while most other forms have suffered It is the only

form of advertising that targets all five senses and has the recipient thanking

the giver Public relations are where the communication is not directly paid for

and includes press releases sponsorship deals exhibitions conferences

seminars or trade fairs and events Word of mouth is any apparently informal

communication about the product by ordinary individuals satisfied customers

or people specifically engaged to create word of mouth momentum Sales

staff often plays an important role in word of mouth and Public Relations

Broadly defined optimizing the marketing mix is the primary responsibility of

marketing By offering the product with the right combination of the four Ps

marketers can improve their results and marketing effectiveness Making

small changes in the marketing mix is typically considered to be a tactical

change Making large changes in any of the four Ps can be considered

strategic For example a large change in the price say from $1900 to $3900

would be considered a strategic change in the position of the product

However a change of $131 to $13099 would be considered a tactical change

potentially related to a promotional offer

The term Marketing Mix however does not imply that the 4P elements

represent options They are not trade-offs but are fundamental marketing

issues that always need to be addressed They are the fundamental actions

that marketing requires whether determined explicitly or by default

Product Profile

The Apollo Tyres ltd Is leading company for all tyres-manufacturing company

in India and The Apollo Tyres Company manufacturing the tyres for the entire

segment (TRUCK LCV PCR FARMS OTR)

20

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 22: Marketing Strategy Opted by the Apollo Tyres1

21

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 23: Marketing Strategy Opted by the Apollo Tyres1

22

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 24: Marketing Strategy Opted by the Apollo Tyres1

HV speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

VW speed rated with superb wet and dry

performance

and exceptional driving pleasure

Innovative asymmetric tread pattern

for maximum performance

Special silica tread compound for better fuel

economy

and wet performance

23

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 25: Marketing Strategy Opted by the Apollo Tyres1

Rim protector

WY speed rated with a quick steering

response

for a sporty performance

Unidirectional V-shaped tread design resists

aquaplaning

Excellent handling at high speeds

Special silica tread compound for better fuel

economy and wet performance

24

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 26: Marketing Strategy Opted by the Apollo Tyres1

ST speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

any misalignment wear in the tyre

Especially designed for low noise

25

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 27: Marketing Strategy Opted by the Apollo Tyres1

MC 20 SH 41

SC32-SUV

26

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 28: Marketing Strategy Opted by the Apollo Tyres1

SE 66 SH 19 SG 47

GLOBAL PRESENCE

Global partnerships global reputations

Apollo opened its first tyres plant in Perambra 1977 Since then we have

grown to become one of the worlds biggest and most respected tyre brands

our operations are now worldwide

For location details please visit our global locations section

Working for you

Many of the worldrsquos leading vehicle manufacturers - including Audi

BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as

standard Our tyre designers work closely with manufacturers We also

involve our India South Africa and Zimbabwe sister companies to provide

the latest research and development testing and manufacturing facilities

27

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 29: Marketing Strategy Opted by the Apollo Tyres1

For more information on original equipment fitment manufacturers

Wherever you are of distribution centres we also supply many retailers

including our retail chain Hi-Q Tyres Use this section to find all the facts and

information on Apollos heritage policie

28

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 30: Marketing Strategy Opted by the Apollo Tyres1

LITRATURE REVIEW

MARKETING for APOLLO

Developing a global brand largely depends on the brands ability to explore

fresh avenues and to sustain its competitive advantages in terms of

economies of scale and productivity A global brand is one which is perceived

to reflect the same set of values around the world A global brand removes

the national barriers and linguistic blocks while marketing internationally The

basic of brand building applies to the global branding strategy also For a

brand to become successful a genuine demand or a psychological need must

exist in the market Today when we are looking at a global market one has to

realize that at the most basic level all human beings share common

physiological and safety needs as explained by Maslow

What separates a customer from another customer at some distant

geographic location is the complex social cultural and esteem needs of the

customer depending upon the stage at which the civilization nation is in the

process of development One common understanding is that despite centuries

of technological development these needs have remained as crucial as ever

At best they have undergone changes modifications due to cultural and social

processes

The real challenges comes for a brand manager when he has to make the

consumer aware about the productservice offered in a distinctive

pattern may be with a name logo or color so that the strategy enables the

customer to correctly identify and choose the brand from a cluttered basket

The brands strength is not confined to the degree of recognizability and the

quality of the product offering Brands deliver more than just a predictable

assurance about quality Strong global brands deliver to the strong emotional

need A brand like Nike talks about believing in onersquos limitlessness Rin

speaks about destroying dirt which we see in its most fundamental form as a

threat that disrupts the neat orderly world that we live in A strong global brand

while addressing a fundamental human motivation

29

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 31: Marketing Strategy Opted by the Apollo Tyres1

delivers to this motivation in a distinctive way They are driven by distinctive

brand ideas The product is seen in the market place as an expression of

brand idea The product merely translates the brand idea in to a tangible form

with features and styles that is delivered to the consumer Dettol being a

global brand is driven by an idea of absolute certainty it provides in feeling

protected against the hostile forces of the dirty world This brand idea the

APOLLO is pursuing through out the globe irrespective of the fact to which

cultural domain they are targeting for

Consumers in all these countries experience the brand idea only through the

strategic actions of the brand in the market place These brands send market

signals consistent with the idea that they stand for Starting from the tangible

attribution of the brand through the product to the integrated marketing

communication the brand consistently sends the same signal in every

market The more consistent is this marketing signal more clear is the brand

image across the country for the global brands The research suggest that

strong brands and are built over time A brand trust gets built over a large

number of interactions across a range of situations So a strong global brand

is like a network of complex psychological and market structural issues that

include situations associations behaviors feelings and symbols held by a

strong and powerful driver with a central idea

A successful marketing strategy has two options in creating a market

presence

It has to kill competition by constant communication and advertising or use

communication to make the customers feel the method to discriminate in favor

of the brand A strong global brand creates associations in consumer mind to

make them see differently by guiding consumers to attach distinct functional

and emotional benefits and appropriate meanings and beliefs to the brand As

a response to this effort the consumer is willing to pay a premium for these

brands only if they represent added value whether as superior quality or a

clear emotional benefit The brand communication should also communicate

and connect to the people The connectivity of Britannia with health is well felt

all over the world This connectivity is the rational justification for them to

30

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 32: Marketing Strategy Opted by the Apollo Tyres1

overcome the extra spending to acquire the brand Successful brands live

beyond generations due to this connectivity

It is not only satisfying customers of different countries with varied cultural

background but also connects with new generations with their new set of

values

hopes and ambitions For a successful global brand it has to click across the

vertical class of generations and horizontal mass of global market

In a global economy organizations must reach customers in markets far from

their home base Strong brand acts as an ambassador when the companies

enter new market or offer new products It also helps in rectifying the

corporate strategy to define which initiatives fit within the brand concept

Brand building for service firms have to modify their corporate strategy also

Professional Services APOLLO such as Anderson consulting re-branded as

Accenture have realized that conveying a sense of trust and shared mission is

as important as technical competence in winning multi million dollar contracts

across the globe Information and the media have made us all global citizens

This presents an APOLLO with the opportunity to broaden market scope by

internationalizing product and service marketing in order to reap the benefits

of economies of scale

Issues in Developing a Global Brand

There are various issues at the organizational level that decides about the

global

branding strategy There are two strategic parameters affecting the decision

of global branding They are the relative strength of globalization pressure in

that particular industry and the degree to which the APOLLO has

internationally transferable assets If globalization pressures are weak and the

companyrsquos assets are not transferable including the brand then the APOLLO

need not go for a global brand It should concentrate in the domestic market in

creating a higher brand value If globalization pressures are weak and the

APOLLO has transferable assets then the APOLLO should look for extending

in to a similar market with a global brand The home advantage due to a

31

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 33: Marketing Strategy Opted by the Apollo Tyres1

strong brand proposition can be used as a platform for building brands in

selective markets By this the APOLLO can reap added revenue and scale

economies with valuable international marketing experience This category of

global brand extension goes for looking at analogous international markets

which are similar to the home market in terms of consumer preference

geographic proximity cultural similarity or even government regulation LG AC

extension to the south Asian market for their three wheelers is an example of

brand success in analogous market The success of Indian movies with a

typical emotional branding is another example of brand success Companies

can look for countries with common cultural and linguistic heritage The

success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also

another example The story of Asian Paints in Indian market has made it to go

for global branding in countries like Nepal Fiji and Korea with its typical low

cost formulations and service delivery propositions to support the brand name

called ldquoACrdquo Companies from emerging markets can also go global and

launch global brands

However for having a global brand one has to take in to consideration a

different set of opportunities and constraints The low cost of wage and

proximity to raw materials also give a competitive advantage for domestic

companies to go global If these players can overcome the deficiencies in

skills and financial resources then launching a global brand will be a difficult

proposition The success of Infosys and Air conditioning as brands in the

global market is example of global branding success in high-tech industry

However there are many complex factors that can affect a global marketing

strategy These include the nature of the product (for example consumer

durable products being more suited to standardization than non-durables)

features of a particular market and even organizational history

32

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 34: Marketing Strategy Opted by the Apollo Tyres1

Common Approaches to Global Branding

The development of standardized marketing strategies can vary dramatically

ndash for example should the strategy be based upon the common features of a

trans-national mass market or upon the identification of common clusters in

different countries The problem for a multi-national APOLLO is that it

operates in a number of countries and adjusts its products and practices in

each at substantial cost So by standardizing elements of the marketing mix

through an international strategy the argument is that efficiency can be

greatly improved

But question marks hover over the extent to which a uniform marketing

strategy can be implemented A great deal of diversity exists in geographical

markets in terms of physical conditions and marketing infrastructure not to

mention political and cultural issues which may impact at brand and

advertising level Cultural disparities can be a major stumbling block for the

generation of trans-national brand names Initiatives such as the world trade

APOLLO is obvious attempts to combat some of these problems by the

removal of national differences and the creation of a borderless world The

idea is that this will enable the rationalization of product mixes to eliminate

brands geared towards particular local requirements

Technology as a Catalyst for Product Standardization The development of the

Internet and satellite television has paved the way for cross-boundary

advertising and promotion But authors such as Mead have also recognized

that a basic similarity in tastes between countries is an important factor

Significant commonalities exist in Japanese American and European lifestyle

patterns and consumer demands It is often argued that increasing travel and

electronic communications will lead to the harmoniza

The argument that was raised against Maslowrsquos Hierarchy was on account of

its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr

Rangarajan argued in his class almost a year ago that people whose meager

basic needs arenrsquot met

33

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 35: Marketing Strategy Opted by the Apollo Tyres1

The early system of warfare and its continued legacy through the ages has

always fascinated me I have always drawn a similar analogy in the realm of

marketing warfare Before sketching out the various strategic elements of a

dynamic marketing mix which ultimately should lead to multibranding I will

dwell a bit on the battlefield tactics and warfare methods to drive home the

modern aspects of my multibranding thesis

The quest to conquer more lands and frontiers was almost always decided on

an open battlefield in the earliest eras of warfare Waves of soldiers would

take up frontal positions and fight pitched battles in accordance with set rules

and norms With the advent of superior weaponry generals on the battlefield

started leveraging competitive advantages The strategic elements emerged

and military strategists resorted to tactical warfare and started working out

gamelans to outmanoeuvre opponents Many tactical moves were planned mdash

for instance redeploying of forces and resources or activating hit-and-run

measuresmdashaccording to changing situations without ever deviating from the

broader vision of winning the long-term war

34

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 36: Marketing Strategy Opted by the Apollo Tyres1

Modern marketing warfare postures

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

Identification Of The Core Brand

As there is increasing multiplicity of competitors it becomes imperative to

identify your core brand This easily represents the first step of multibranding

that a strong brand needs to adopt The brand so identified must basically

deliver the largest volume and the highest cash flow Clearly this brand has to

be in a leadershipnear-leadership positionmdashwith this being the most

attractive element of the business At this juncture it is time to begin the step-

by-step line of activities to guard the core brand Create one or more smaller

product categories to protect the flanks after fortifying the top and the rear

with a slew of other aggressive products

In the soaps business Lux crafted a multibranding strategy to ward off the

incessant threat from a new and aggressive line of competitors At the core

was the main brand Lux which fought with all the competitors and connoted

the image of a dominant brand of soaps Then Lux introduced a number of

35

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 37: Marketing Strategy Opted by the Apollo Tyres1

soaps that went on to become volume sellers and gave Lux a protective

cushion As a rearguard measure Lux brought in Jai into the market to

consolidate its overall market share Similar has been the case with market

leader Colgate in the high-decibel high-activity toothpaste segment

Apollo suv tyres From market leadership to overall brand consolidation

Apollo suv tyres rsquos case history when it unravels its detailed chapters

represents a classic multibranding success story In the consumer electronics

sector Apollo suv tyres was a mass brand and very middle-class in

lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the

flanks to ward off the thrust from the Sonys the Panasonics and the VFM

Korean range of products So Apollo suv tyres developed Bazooka as a top-

of-the-line product to spearhead a frontal assault Toshiba too was introduced

to reinforce this strategy to take on all comers Private was introduced as a

sub-brand and gave tremendous protection to the brand in all the size

categories and especially from price-aggressive competitors The coup de

grace was to bring in Sansui to protect the flanks completing the protection of

the core brand Apollo suv tyres from virtually all sides

But according to Newtonrsquos law each and every force has an equal and

opposite reaction So while a new range of brands and sub-brands creates a

revenue thrust and protects the core brand the core brand tends to get

compressed over a medium- to long-term period Likewise Apollo suv tyres

saw its market share fall to 19 per cent from 26 per cent However all the

other brands that were a part of the overall multibranding campaign gained

substantial market share So while production capacities were shored up

brand shares got fragmented This led to an overall consolidation of the core

brand Apollo suv tyres which itself grew by 40 per cent Thus a

multibranding exercise once initiated can bring about a substantial

consolidation of the core brand

Another application of multibranding is to move into product segmentation

based purely on the socio-economic parametermdashsomething which Raymond

as a core brand specialized in Park Avenue the Raymond brand of

readymades was introduced to cater to the new breed of professionals that

36

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 38: Marketing Strategy Opted by the Apollo Tyres1

was a part of the liberalized era For the youth who were more into casual

wear there was the Parx range of casuals across various product categories

After that Manzoni an absolutely top-of-the-line range of ties suits and

jackets was introduced Manzoni has been a complete sellout in a period of

six months whereas the other brands have flowered independently toomdash

reinforcing the brand values of the core brand Raymond and consolidating

the overall market share

Multibranding The Big Boysrsquo Game

There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be

played by the big players in earmarked business areas and business streams

Profitable enterprises with the necessary operational efficiencies are the only

ones capable of supporting brand promotion and brand protection exercises

Besides they are the only ones capable of allocating huge budgets deploying

huge resources and making tactical retreats or assuming aggressive postures

whenever ticklish situations arise Also it must be said that over a period of

time as the stronger brand consolidates they have the wherewithal to not

only set up entry barriers but also take on aggressive competitors already

present in their market space

Future and Beyond

Technology and the growth of the Internet as a business-enabler will play a

dynamic role in extending the tremendous value of the multibranding concept

Blocks of corporate houses which will capture their spaces and keep

consolidating will emerge in the long run There will be transgression of the

main brands and sub-brands which while achieving critical mass will have

their own independent status Here multibranding will be effected through a

process of acquisitions buyouts and mergers alternately leading to the

overall consolidation of the main brand Information management will become

very important and the derived competitive advantages will lend a new

dimension to the multi-branding concept In fact this will ultimately lead to

knowledge-based marketing

37

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 39: Marketing Strategy Opted by the Apollo Tyres1

Today brands and other tangible assets represent a significant proportion of

a companyrsquos enterprise value The traditional Approach to brand management

is changing and their has been shift towards a new paradigm in the marketing

APOLLO This emerging trend represents a more away from a system

focuses on the individual brand manager who is responsible for all the

business activities that relate to ensuring the success of a specific brand

Branding identifies five major environmental forces affecting market behavior

and

suggests their implications for brand management We pay some attention to

interrelations among these forces and the proactive nature of brand

management itself in helping shape them Given dramatic changes in the

competitive nature of product-markets and technology and their

consequences in the evolving role of both distributors and facilitating

organizations it is understandable that decision processes and organizational

structures used to make and implement brand decisions also may need

reexamination

Firms face difficult trade-offs between the increased importance of

coordinating brand activities both within and outside the organization and the

pressures to decentralize decision making and eliminate entire layers of

management in the hope of curtailing costs Low and Fullerton (1994) trace

the evolution of brand management from the origins of the first national

brands to the present They provide an important historical perspective for

many of the issues affecting brand management today They note that brand

management has proves quite adaptable to differing firm and marketing

environments over its existence As the modern corporation increasingly

incorporates horizontal coordination structures the brand manager may even

become part of cross-functional teamsThe original logic for the brand

manager system in the multibrand firm rested on the belief that competition

internally for resources would improve efforts on behalf of each brand But

managers for multiple brands in the same product category (such as Cheer

Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly

with one another as they did with counterparts from competing firms The

38

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 40: Marketing Strategy Opted by the Apollo Tyres1

difficulty in coordinating marketing programs for each brand and demands for

a more coherent approach to managing an entire category of products on the

part of the trade led firms such as P amp G recently to centralize decision

making at the category level with other firms either following or actively

studying the possibility Low and Fullerton (1994) comment that category

management also affords the opportunity for more experienced executives to

involve themselves with the brand management function thereby reducing

one of the weaknesses of traditional brand management

Zenor (1994) argues that a category form of brand management APOLLO

seems inherently justified by an improved ability to coordinate pricing and

other marketing efforts for a firmrsquos different products and brands His research

uses a game theoretic model to estimate the magnitude of profit advantage

that category management affords given varying degrees of crossbrand price

elasticity in the market He demonstrates that the success of category

management is enhanced when competitors are organized similarly

Estimates of gain can be compared with the costs of implementing a category

management structure to decide if such a move is beneficial

Brand managers must address the exigencies of the evolving needs of buyers

within a market increasingly populated by global competitors and the opening

of territorial markets They must deal with the fuzziness of product-market

boundaries aided by increased deregulation and competitive initiatives which

has the creation of new products services and the lowering of costs as

principal benefits

An increasing pace of technological change which profits from its own past

successes and is given new impetus with globalization and increased

competition and represents another factor contributing to blurred product

market boundaries the growing power and independence of the channels of

distributions as intermediate customers often made possible by advances in

information technology and pressure from investors to produce more

predictable growth in

39

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 41: Marketing Strategy Opted by the Apollo Tyres1

revenue profits and cash flows and thus benefit from cost reduction These

forces affect buyer expectations and opportunities and by so doing impact

back upon themselves creating change

Brand managers must realize that how competently they respond depends in

part on how they leverage new capabilities and options presented and that

their actions affect the very forces to which they respond Throughout this

paper as appropriate we highlight the special contributions and identifies

several research opportunities this perspective efforts

Marketers must create competitive advantage by constantly adapting to and

instigating change An innovative product or program loses its competitive

edge and the ability to command price andor share premiums as soon as

competitors are able to duplicate or counter its capabilities Hence successful

marketers must dare to be different to market changes are likely to be more

successful if actions are guided by knowledge of the forces shaping market

behavior and insights that enable the development of sustainable competitive

advantages

Globalization of Competition and Greater Openness of Markets

For an increasing number of cases the globalization of the world economy

can present daunting challenges Japanese manufacturers have had

unrivaled successes in the motorcycle and consumer electronics markets in

part due to associations with quality and reliability The December 1993 issue

of Consumer Reports carries brand name ratings in six product categories

pocket knives bread makers SLR cameras perfumes rack stereos and

miniature televisions In each category the top rated brand and over 60 of

the top ten brands were foreign

This attack from global competitors accounts for many sleepless nights for

brand

managers Brands often must thrive globally to survive locallyBrand

management changes and competitive advantage model elaboration A

40

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 42: Marketing Strategy Opted by the Apollo Tyres1

systems model of brand management will be presented in the spirit of Meade

and Nason (1991) in the marketing literature A system can be defined in

terms of structure and with respect to this the structure of a system refers to

the specified set of relationships The importance of this lies in the

identification of potential interdependence among the components that is the

influence that one or more sets of relationships may have upon the others

(Dixon 1991) The model presented in this paper attempts to identify levels of

interdependence in the brand management system to then identify

hypothesized relationships between variables The central idea of the modal

is that brand management is a holistic system it receives information from

internal sources it creates a structure to meet the needs of both internal and

external constituents and then develops strategies which should help attain

competitive advantage There are feedback loops which permit the system to

receive information from a variety of sources so that the system can adapt to

changes

The existing research has revealed that external environmental changes

(Shocker 1994) and APOLLO specific variables have caused marketing

APOLLO to begin adopting new brand management system and

subsequently are changing the function of the manager It should be noted

that the changes occurring in brand management mirror those at the

corporate level as pointed out by Miller (1987) when he related the variables

of strategy structure and environment Miller (1992) further showed that firms

which adapt their organizational structures to the environment are best suited

to meet the needs of the external environment The recent upheaval in

marketing organizations and specifically brand management system reflect

these findings These changes have led to changes in micro-level brand

strategies as well as effects on competitive advantages The model will be

elaborated in detail below and then research propositions will be outlined

which relate to the inter relationships which exist in the brand management

system

41

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 43: Marketing Strategy Opted by the Apollo Tyres1

Strategic Alliances

In the face of global competition domestic firms may seek alliances with

foreign

competitors thus co-opting them and preventing their availability to

competitors Such alliances have become the norm in the auto industry Or

given shrinking margins and profits at home companies may seek greater

opportunity in the global arena To survive companies often have to share

costs and risks and therefore rewards Increasingly they also are forced to

share knowledge distribution and even capital via strategic alliances that can

stretch organizational capabilities and change the nature of brand

management The brand manager must coordinate with counterparts outside

the firm as well as traditional contacts within For many firms strategic

alliances with certain suppliers distributors and even former competitors are

a key to future competitive strength Cobranding extends to alliances between

the complementary brand names of independent producers for example

Fordrsquos Citibank MasterCard

42

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 44: Marketing Strategy Opted by the Apollo Tyres1

Collaborating with competitors

Although alliances between manufacturers with complementary skills or

between manufacturers and their suppliers and distributors is natural and

understanable even direct competitors can find reasons to collaborate The

strength of global challenges encourages domestic competitors to form

alliances and creates pressures for changes in antitrust regulation to make

the alliance feasible Global alliances may provide a way of weakening

antitrust restraints This requires new thinking and possibly a split personality

for the brand manager as he or she cooperates in one domain while possibly

remaining competitive in another This may force new organizational

arrangements on the firm

Designing Products for Global Acceptance

There are myriad factors that influence both customer and competitor

behavior in foreign markets An emerging strategy that seems to be

succeeding is to plan globally and act locally in which activities such as

product design are conducted at a global level but marketing and other

transactional activities are customized locally Finally managers must be

careful in coping with cultural or language differences

The expansion into Europe was comparatively easy from a cultural

standpoint As Japan developed the cultural differences were larger and US

business had more difficulty there As we look ahead the cultural challenges

will be larger still in the rest of Asia ndash from China to indonesia in Thailand to

India ndash where more than half the world lives US companies will have to

adapt to those cultures if they are to succeed in the 21st century

The brand manager may press for flexible product designs that contain

features important to all markets collectively or options that can be added

readily to a basic design to satisfy local requirements Brand management will

be involved actively in seeking out selecting from and implementing an array

of such options

43

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 45: Marketing Strategy Opted by the Apollo Tyres1

The Increasing Openness of Markets

Deregulation often leads to increased competition from outside traditionally

defined product ndash market boundaries Each of these new competitors are

leveraging their established relationships with customers to penetrate the

credit card market rapidly To contain threats banks have gone into

partnership with airlines and telecommunication companies to offer credit

cards with ldquofrequent userrdquo miles

The effects of deregulation are felt in varied industries ranging from import

export to telecommunications health care and transportation It is worth

nothing that competitive forces often precede deregulation They are both a

cause and an effect The challenge to brand management is sometimes how

to adapt proactively to harsh new market realities before the protection

afforded by regulation is removed

Competition

In an era of rapid technological change accompanied by fast innovation

shorter product life cycles and converging markets time-based competition is

becoming increasingly important Companies with shorter product

development cycles can close in on potential markets faster Each product

iteration enables a fast-cycle APOLLO to apply marketplace learning (eg

features and functions that customers like or do not want) thereby potentially

improving success of the next model Brand managers acquire greater

control When competitors can leverage similar technologies to doplicate

products and services speed is even more important Harvesting the best

customers Occupying the mental corner store

Developing a reputation for innovation Shorter order fulfillment cycles

Mass customization The Increased Power of Distribution and the Evolution of

Channels The new level of competition in many product markets has been

abetted by dramatic changes in product distribution and the behaviors of

distributors Whereas in the past products moved in a loosely coupled fashion

from manufacturers to wholesalers and retailers to the final consumer all

levels of distribution and supply now see the importance of systemwide

44

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 46: Marketing Strategy Opted by the Apollo Tyres1

coordination to improve operating efficiences The advent of the term

ldquorelationship managementrdquo captures this new awareness of symbiotic

interoganizational requirements for delivering customer value For some

manufacturers this has led to the recognition that distributors are customers

with their own preference functions Conflict within the channel in the past

merely a nuisance is now seen as a potentially fatal obstacle to the success

of the brand Intensifying product market competition also has changed the

geographic scope of product market boundaries As markets become more

global the scope of distribution systems

for most firms has broadened as well Brand managers now recognize the

incredible value of global brands ndash those recognized and admired throughout

the world ndash and the difficult tasks associated with their creation and

maintenance

As the relationship between producers and distributors has intensified the

relative power of distributors especially retailers also has increased The

rapid diffusion of electronic scanner systems has contributed to the shift in

information power from manufacturers to retailers Now store managers can

respond quickly by examining the impact of promotions They can tell the

salesperson what works best ndash and what does not This has led the brand

manager to more consultation with distributors to seek greater understanding

of their perspectives

In many cases retailers are demanding and getting access to

manufacturersrsquo products for their own private label and store brand purposes

The national brand may be forced to concentrate only on flavors or varieties in

which the private label does not choose to compete This power shift away

from the producers of branded products has led to the welldocumented

increase in the use of marketing actions directed at the trade rather than final

consumer Distributors interested in profit across brands and product

categories (Zenor 1994) and developing their own bonds with consumers are

prone to play manufacturers against one another creating difficulties for sales

and brand managers This has encouraged brand managers to obtain sound

market research information to become better informed in dealing with

45

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 47: Marketing Strategy Opted by the Apollo Tyres1

distributors Managers of large brands can try education to wean trade

customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and

other strategies

NEW TRENDS OF THE MARKETING

It is at the product ndash market level that broad environmental forces are

transformed into specific competitive threats and opportunities that require

new and creative brand management responses Both customers and

competitors learn and adapt Once PC buyers learned that IBMcompatible

clones were reliable and used the same components as name brands they

refused to pay hefty price premiums for IBM or Compaq The introduction of

Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple

and IBM ndash compatible computers closer together and made each more

vulnerable to price competition from the other Corporate downsizing and

corresponding reduction in in-house purchasing expertise may imply

increased importance for intangible ldquoproductrdquo components such as the service

and relationship dimensions This shift may cause an increase in the

importance of corporate brands and bring reward to reapportions that are

compatible The brand manager must become ever more sensitive to these

possibilities Brand management is challenged to understand the dynamics of

changing markets and manage brand association

The Usefulness of Brands

The value of a brand name is associated closely with its awareness quality

perception and the customer satisfaction engendered by related products and

offerings among others (Aaker 1991) Brands are symbols that consumers

have learned to trust over time and they often signal intangible product

qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo

such as perceived reliability quality and safety (Nelson 1970) that products

and related

marketing programs afford Such intangibles often lead to more defensible

advantages for the firm relative to search attributesrdquo (physical features and

prices that are readily comparable across brands via inspection or information

46

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 48: Marketing Strategy Opted by the Apollo Tyres1

search) because consumer learning time and experience opportunities are

limited Search attributes moreover often can be copied readily by

competitors and it is only when they have not been (because of insufficient

time patent protection proprietary production and distribution processes or

creative promotion) that they also contribute to brand equity

Broniarczyk and Alba (1994) provide empirical support for this signaling

interpretation of brand equity

Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection

from

competition Relationships put any single action in perspective its importance

evaluated against the back ground of previous experience with the brand

Consequently managers have found that satisfied customers often have

many desirable characteristics ndash they by more are willing to pay more incur

lower sales and service costs and provide referrals This has spurred brand

managers

to focus on customer satisfaction as a measure of operational success

The value imperative

Buyers across product-markets have always demanded ldquovalue but defined it

by the behaviors of competitors Tougher economic times increase sensitivity

With added market alternatives available they are now demanding high

product quality and good customer service at reasonable prices The increase

in market share for private labels suggests consumers may be less willing to

apy hefty price-premiums for the ldquoimagerdquo component of national brands

Focus on value requires a paradigm shift ndash from a price-quality relationship in

which high quality could be assumed to lead high prices to one in which

companies must produce high-quality products and services at ever lower

prices

Some distributors have adopted an EDLP strategy or have added ldquovalue

productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo

47

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 49: Marketing Strategy Opted by the Apollo Tyres1

development of new products starting with the desired price point and image

and then designing the product and program to achieve it

Markets also are becoming fragmented by the growing differences in tastes

that

acAPOLLO increasing cultural and economic diversity Buyer differences in

such factors as concern for the environment the value of time and health

and nutrition also provide scope for differentiation The rise of cable with its

offer of myriad channels and the consequent decline of network television

represents media response to increasing fragmentation of audiences but it

also makes it more expensive to reach potential customers Managers of

brands still face a need to

provide an orchestrated message to customers distributors and other publics

in the form of ldquoone voice marketingrdquo Although hardly an innovative concept

the goal of integrated marketing communications has been driven by the

increasing feasibility of direct marketing activities fragmented nature of

media emergence of more sophisticated and efficient telecommunications

and increased reliance on sales promotions relative to advertising Each of

these has made the development of a strong and consistent brand image

more difficult to achieve

Because it is inherently individual and multidimensional brand equity can be

difficult to measure and even an appropriate measure can depend on user

purpose A variety of measures have ben proposed in the literature of offered

as the proprietary products of market research and advertising firms Each

has strengths and weaknesses and must be evaluated in light of brand

managementrsquos purposes The brand manager gains understanding of the

relative contribution of product attribute perceptions and nonattribute imagery

to the brand equity for different segments and enables valuation of a brandrsquos

extension to different product lines and other markets The rapid increase in

market information for managing brands particularly from scanner technology

at the retail level has had a major effect on how brand management

decisions are made Such research data are more objective and can be

collected and processed in a timely fashion Often historical data for a product

48

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 50: Marketing Strategy Opted by the Apollo Tyres1

category are immediately available to the manager when the need for them

arises Increasingly more and better decision aids have been created to

analyze such data The different strengths of data collected at the household

(micro) and store

(macro) levels might be combined to offer the brand manager more detailed

information about brand preferences and socioeconomic characteristics of

buyers (and segments) along with information regarding the sensitivity of the

market to price promotions the impact of a brandrsquos strategy on competitors

and the vulnerability of the brand to competitive actions

Needless to say brand managers appear increasingly challenged The world

of the brand manager is complex and becoming more so Technology is at

once a curse and an opportunity ndash while creating new capabilities for the

brand manager it also provides a need for new skills and different vision The

forces brand managers face are not temporary If anything they increase the

need for the type of coordinated management brand management traditionally

has as its strength Brands continue to have value in a competitive

marketplace and undoubtedly will continue to exist Although specific

organizational forms may change brand management itself will adapt and

thrive as managers accept new challenges by improving their competitive

ability The global management of brands especially with respect to whether

when and how brand names can be used as sources of competitive

advantage in an increasingly global economy The impact of information

technology on the brand management system and brand managerrsquos job-how

that job is changing as decisions are decentralized and involvement in those

decision is broadened both inside and outside the organization How to

leverage technology better when it is not proprietary to a single firm Better

understanding the causes of individual segment and mark behavior

(Barabba and Zaltman 1991) promising starts have been made by research

dealing with purpose and context in buyer decision- making but more is

needed to understand how buyers from the criteria they use to evaluate

products and marketing offerings and how these change with different

decision contexts Better understanding of the circumstances under which

brand equity varies and when individual-or segment-level measures are better

49

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 51: Marketing Strategy Opted by the Apollo Tyres1

Globalization may imply that buyers are less (more) homogeneous then

they may be domestically The role of usage application on brand equity is

poorly understood

The relationship between the shift in power in distribution channels and the

control over brand over brand names and the marketing programs that

support those brands Must private label national brand status create a

fundamental distinction irrespective of quality of the product The

development and importance of corporate brands and brand identity

especially within business-to-business and service contexts The

understanding of better ways to manage joint and co-branding and other

forms of strategic alliances especially those between erstwhile competitors

and The development of more of a ldquosystem view of brands and products to

include how intangibles created by the pricing promotional service and

distribution decisions of the brand manager combine with the product itself to

create brand equity and affect buyer decision making

50

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 52: Marketing Strategy Opted by the Apollo Tyres1

RESEARCH METHODOLOGY

Research Objective

To understand the objectives of the marketing strategy of Apollo Tyres

To study the different product differentiation for the Apollo tyres

To analyze the customer and retailers view about the selling Apollo

tyres

To recommend feasible improvements in the marketing strategy opted

by the Apollo tyres

HYPOTHESIS

After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based

tyre manufacturer has emerged as one of the premier tyre manufacturers in

India Starting with one plant and an installed capacity of 420000 each of

tyres and tubes Apollo currently has eight plants in the country A ninth plant

in south India with a capacity of 24 million radial truck tyres will be added

soon The company is credited with Indias first radials and first range of high-

speed tubeless passenger car tyres It has spread its wings internationally

too Apollo has grown inorganically to establish its market presence across 30

African countries A recent acquisition adds Europe as its third crucial market

RESEARCH METHODOLOGY

Secondary Data

It will consist of information that already exists somewhere in documents The

secondary data will be collected from the newspapers expert reports internet

and Apollo Tyres Companyrsquos website etc

Internet - wwwgooglecom wwwwikipediacom etc

Past records and analysis

Books Magazines amp Journals

Both primary and secondary data will be collected to analyze

Existing market scenario of Indian market with respect to auto

industry

51

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 53: Marketing Strategy Opted by the Apollo Tyres1

Customers views regarding Indian automotive Industry

Expertsrsquo opinion regarding Indian Industry and contribution of

Apollo tyres into it

PRIMARY DATA

Primary data will be collected from the people from Apollo tyres as an

marketing manager or senior level management The primary information will

be collected through questionnaire and Interviews presented to the Apollo

tyres customers and retailers

Questionnaire ndash Structured

Dichotomous open ended multiple choice

Personal Interview

General Discussions

Tool Used

Bar Graph Pie Diagram

SAMPLING METHOD

Random Sampling chosen by the gathering of data

SAMPLE SIZE

100 people

TARGET AUDIENCE

Marketing manager of the firm retailers based at Delhi and NCR and

customers

SCOPE OF THE WORK

To analyze the existing performance marketing strategy done by the Apollo tyres its

effectiveness and recommendations and measures to improve the procedure in the

organization

JUSTIFICATION OF THE CHOOSING TOPIC

52

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 54: Marketing Strategy Opted by the Apollo Tyres1

Tyre manufacturers have had a rough time in the past one year While

demand shrunk in the backdrop of slowdown in the automobile sector raw

material prices soared denting margins extensively High cost of funding too

added to the woes However there has been a substantial correction in prices

from the highs seen in FY09 Rubber and crude oil are both at much lower

levels Prices of crude oil derivatives such as carbon black synthetic rubber

nylon cord fabric and rubber chemicals have brought significant respite to all

tyre majors

53

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 55: Marketing Strategy Opted by the Apollo Tyres1

DATA ANALYSIS AND FINDING

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

When we asked about the general rating that customers might give to Apollo

Tyres has whole the feed back that they gave was as follows approx 23

customer said that Apollo Tyres is excellent and 56 customer said that

Apollo Tyres is very good 21 customer said that Apollo Tyres is average

and know body is said that Apollo Tyres is below average The graph below

shows the following information

When asked about where do most of the customers go for purchasing Apollo

Tyres the feed back that were received from customers are as follows around

75 customer said that they purchase Apollo Tyres from the exclusive dealer

of Apollo Tyres 20 customer said that they purchase from MBDs (Multi

brand dealer ) so that they could make a comparison of cost between Apollo

and other brands available and rest 5 customer said that they purchase

Apollo Tyres from other tyres traders the graph below gives better information

54

0

10

20

30

40

50

60

Excellent Very Good Average Poor

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 56: Marketing Strategy Opted by the Apollo Tyres1

55

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 57: Marketing Strategy Opted by the Apollo Tyres1

When asked about how easily customer get Apollo Tyres the response was

follows approx 82 customer said that they get Apollo Tyres very easily

whenever they require them from the nearest dealer and 18 customers said

that there is always a scarcity of the most popular brands of Apollo Tyres Ltd

Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL

The Graph below shows the exact position

56

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 58: Marketing Strategy Opted by the Apollo Tyres1

AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES

The 83 customers are fully satisfied with the Apollo Tyres and just

17 customers are not satisfied with the Apollo Tyres We met the different

customers Customer said that the quality of Apollo Tyre is very good Tyre is

very costly but the performance of Apollo Tyre is better than other tyres They

said that the claim policy of Apollo Tyre is very good Several customers are

very friendly and the Co-operate in our work but few customers behaved very

rudely Customers are happy with the campaign and they said that they gain a

lot of knowledge from the campaign and they said that campaign should be

organized continuously in different area

57

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 59: Marketing Strategy Opted by the Apollo Tyres1

These things give us a good experience and obtain good knowledge about

customers attitude

EXHIBIT-21(a)

Table showing Brand preference for front wheel as per respondents

Table-21(a)

Brand No Of Respondents Per Cent

JK 31 31

APOLLO 28 28

MRF 8 8

BIRLA 23 23

OTHERS 10 10

TOTAL 100 100

Source- Primary data

58

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 60: Marketing Strategy Opted by the Apollo Tyres1

Fig-21(a)

Brand preference for front wheel

31

28

8

23

10

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [31] prefer JK tyer for front wheel because of smooth driving

28 of respondents prefer APOLLO tyre for better mileage 8 of

respondents prefer MRF tyre for quick service 23 of the respondents prefer

Birla tyre for better claim policy 10 of the respondents prefer other brands

59

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 61: Marketing Strategy Opted by the Apollo Tyres1

EXHIBIT-21(b)

Table showing Brand preference for rear wheel as per respondents

Table-21(b)

Brand No Of Respondents Per Cent

JK 28 28

APOLLO 18 18

MRF 10 10

BIRLA 27 27

OTHERS 17 17

TOTAL 100 100

Source- Primary data

60

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 62: Marketing Strategy Opted by the Apollo Tyres1

Fig-21(b)

Brand preference for rear wheel

28

1810

27

17JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [28] prefer JK tyer for rear wheel because of smooth driving

18 of respondents prefer APOLLO tyre for better mileage10 of

respondents prefer MRF tyre for quick service 27 of the respondents prefer

Birla tyre for better claim policy 17 of the respondents prefer other brands

61

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 63: Marketing Strategy Opted by the Apollo Tyres1

EXHIBIT-22

Table showing Best brand as per respondents

Table-22

Brand No Of

Respondents

Per Cent

JK 29 29

APOLLO 27 27

MRF 5 5

BIRLA 27 27

OTHERS 12 12

TOTAL 100 100

Source- Primary data

62

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 64: Marketing Strategy Opted by the Apollo Tyres1

Fig-22

Best brand as per respondents

29

275

27

12

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation From the above table it is shown that majority of the

respondents [29] prefer JK tyer because of smooth driving better quality

and reasonable price etc 27 of respondents prefer APOLLO tyre for better

mileage good appearance5 of respondents prefer MRF tyre for quick

service flexibility 27 of the respondents prefer Birla tyre for better claim

policy load capacity 12 of the respondents prefer other brands

63

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 65: Marketing Strategy Opted by the Apollo Tyres1

EXHIBIT-23

Table showing Reason behind the selected brand as per respondents

Table-23

Particular No Of

Respondents

Per Cent

QUALITY 29 29

PRICE 23 23

CARRYING

CAPACITY

27 27

DURABLITY 21 21

TOTAL 100 100

Source- Primary data

64

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 66: Marketing Strategy Opted by the Apollo Tyres1

Fig-23

Reason behind selected brand as per respondents

29

2327

21 QUALITY

PRICE

CARRING CAPICITY

DURABLITY

Interpretation From the above table it is shown that 29 of the respondents

prefer the brand for better quality 27 of the respondents prefer the brands

for better carrying capacity 23 of the respondents prefer the brand for price

and 21 of the respondents prefer for durability

65

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 67: Marketing Strategy Opted by the Apollo Tyres1

EXHIBIT-24

Table showing Qualities of selected brand as per respondents

Table-24

Particular No Of

Respondents

Per Cent

SERVICE 24 24

LESS EROSION 16 16

CLAIM 31 31

MILEAGE 19 19

OTHERS 10 10

TOTAL 100 100

Source- Primary data

4

66

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 68: Marketing Strategy Opted by the Apollo Tyres1

Interpretation 31 of the respondents prefer the brand for better claim 24

of the respondents prefer the brand for better service 19 of the respondents

prefer the brand for better mileage 16 of the respondents prefer the brand

for less erosion and 10 of the respondents prefer the brand for other

reason

67

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 69: Marketing Strategy Opted by the Apollo Tyres1

EXHIBIT-25

Table showing Best claim policy of selected brand as per respondents

Table-25

Brand No Of

Respondents

Per Cent

JK 19 19

APOLLO 30 30

MRF 17 17

BIRLA 23 23

OTHERS 11 11

TOTAL 100 100

Source- Primary data

68

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 70: Marketing Strategy Opted by the Apollo Tyres1

Fig-25

Interpretation From the above table it is shown that 30 of the respondents

prefer ApoLLo for better claim policy 23 of the respondents prefer Birla

19 of the respondents prefer JK tyre 17 of the respondents prefer MRF

and 11 of the respondents prefer other brands for better claim policy

69

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 71: Marketing Strategy Opted by the Apollo Tyres1

EXHIBIT-26

Table showing Best claim policies of APOLLO as per respondents

Table-26

Particular No Of

Respondents

Per Cent

QUICK 19 19

MORE FACILITY 20 20

RELIABLE 17 17

NO PENDING 21 21

GURANTEE 23 23

TOTAL 100 100

Source- Primary data

70

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 72: Marketing Strategy Opted by the Apollo Tyres1

Fig-26

Interpretation From the above table it is shown that 23 of the respondents

prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending

policy 20 of the respondents prefer more facility 19 of the respondents

prefer quick policy 17 of the respondents prefer more reliable policy

71

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 73: Marketing Strategy Opted by the Apollo Tyres1

EXHIBIT-27(a)

Table showing Brand preferred for heavy load capacity

Table-27(a)

Brand No Of

Respondents

Per Cent

JK 26 26

APOLLO 18 18

MRF 7 7

BIRLA 29 29

OTHERS 20 20

TOTAL 100 100

Source- Primary data

72

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 74: Marketing Strategy Opted by the Apollo Tyres1

Fig-27(a)

Interpretation From the above table it is shown that 29 of the respondents

prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of

the respondents prefer other brand 18 of the respondents prefer APOLLO

tyre and 7 of the respondents prefer MRF tyre for heavy load capacity

73

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 75: Marketing Strategy Opted by the Apollo Tyres1

EXHIBIT-27(b)

Table showing Brand preference for medium load capacity

Table-27(b)

Brand No Of

Respondents

Per Cent

JK 27 27

APOLLO 26 26

MRF 8 8

BIRLA 14 14

OTHERS 25 25

TOTAL 100 100

Source- Primary data

74

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 76: Marketing Strategy Opted by the Apollo Tyres1

Fig-27(b)

Interpretation From the above table it is shown that 27 of the respondents

prefer JK tyre for medium load capacity 26 of the respondents prefer

APOLLO tyre 25 of the respondents prefer other brand 14 of the

respondents prefer Birla and 8 of the respondents prefer MRF for medium

load capacity

75

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 77: Marketing Strategy Opted by the Apollo Tyres1

EXHIBIT-27(c)

Table showing Brand preference for normal load capacity

Table-27(c)

Brand No Of

Respondents

Per Cent

JK 24 24

APOLLO 23 23

MRF 10 10

BIRLA 23 23

OTHERS 20 20

TOTAL 100 100

Source- Primary data

76

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 78: Marketing Strategy Opted by the Apollo Tyres1

Fig-27(c)

Interpretation From the above table it is shown that 24 of the respondents

prefer JK tyre for normal load capacity both 23 of the respondents prefer

APOLLO and Birla 20 of the respondents prefer other brand and 10 of

the respondents prefer MRF for normal load capacity

77

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 79: Marketing Strategy Opted by the Apollo Tyres1

EXHIBIT-28

Table showing Motivating factors behind the level of satisfaction

Table-28

Particular No Of

Respondents

Per Cent

HANDLING 13 13

APPEARANCE 28 28

TRACTION 16 16

RIDE 16 16

DURABILITY 27 27

TOTAL 100 100

Source- Primary data

78

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 80: Marketing Strategy Opted by the Apollo Tyres1

Fig-28

Interpretation From the above table it is shown that 28 of the respondents

are satisfied with the appearance of the tyre 27 of the respondents are

satisfied with the durability of the tyre both 16 of the respondents are

satisfied with the traction and ride of the tyre and 13 of the respondents are

satisfied with the handling capacity of the tyre

79

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 81: Marketing Strategy Opted by the Apollo Tyres1

CONCLUSION

The paper provides an empirical view of the range of promotions launched in

the Indian market place from 2003 to 2009 The different promotions include

free gift offers price offs extra product offers exchange offers buy-more-

and-save offers contests and sweepstakes The most frequently launched

promotion is the free gift offer followed by the sweepstake offer and extra

product offer Some differences in trends are found across Consumer Durable

and Service sectors A detailed description of each type of promotion is

provided in order to highlight the different incentives offered by such

promotions

Details about Different Types of Promotions

The specific details about the different types of promotions - price offs free

gift offers sweepstakes extra product offers contests exchange offers and

buy-more-and-saveget offers - are discussed in the following section

1 Exchange Offer

This promotion is seen mainly in the consumer durable product category This

promotion requires the consumer to exchange an old product for a new one

and get some benefit usually a price reduction For example in case of Ac

the scheme offers the consumer a price reduction of Rs 10000 on the new

AC in exchange for an old AC For pressure cooker the scheme offers a price

reduction of 40 on exchanging an old cooker for a new cooker In case of

household durables the scheme usually requires the consumer to exchange

an old model of a product (eg AC refrigerator music system mixer grinder

gas stove) to get a price reduction on the new model Apart from exchanging

an old durable good the scheme also involves exchanging a small TV for a

big TV Most exchange schemes provide an incentive to purchase in the form

of a price reduction One exchange scheme involved returning an old washing

machine for a new one and getting an electric iron as giftThe purpose of the

exchange scheme appears to be upgrade existing users of durable products

to newer and larger sized models of a product

80

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 82: Marketing Strategy Opted by the Apollo Tyres1

2 Free Gift Offer

This promotion is popular across a range of product categories It offers the

consumer an incentive to purchase in the form of a free productservice For

example in case of a car purchase the consumer is offered a free product

such as a music system or accessories The consumer may also be offered a

free service such as extended 3-year warranty or free insurance Often the

product offered free is a complement to the original purchase This is

illustrated by instances of the following types of free gift offers

1048707 a free stabilizer with an AC purchase

1048707 free pillows with a mattress purchase

1048707 free petrol on a 2 wheeler purchase

1048707 free toothbrush with toothpaste

1048707 free shaving blade with shaving gelfoam

At times the product offered as a free gift constitutes an upgrade to the

original purchase For example in case of Computer Printers a free Internet

connection Internet telephony it software titles and multimedia package is

offered along with the printer Or in case of notebook computerPC the

consumer is offered a Free Internet upgrade and 20 GB Web Camera

Printer Britannica CDs software In case of fast food restaurants the free

products are items such as soft drink bread stick pineapple fudge garlic

bread ice cream cookies Here the free products appear to be lsquouse

complementsrsquo to the original product

At other times the free product may be a related product or product used in a

similar context eg cooking or cleaning or personal care or eating For kitchen

products the free product are items used in the kitchen such as plastic

containers metal spoon tawa non stick pan idli stand serving bowl table

mat and OTG In case of detergent powdercake the free products are related

cleaning products such as bleach washing soap washing powder bucket

bath soap floor cleaner and utensil cleaner In the skin care segment the free

products are other personal care items such as soap body lotion shampoo

81

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 83: Marketing Strategy Opted by the Apollo Tyres1

sachet shaving cream and toothpaste In case of food products the free

product comprises of other edible items such as biscuits coffee namkeen

salt chocolate

At other time the free product may be totally unrelated to the original

purchase For example the consumer may be offered a free pen with a skin

care cream or free batteries with soap It is possible that in such cases the

products through unrelated are targeted to the same segment of consumers

This is particularly seen in free gift promotions targeted at children For

example in case of health drinks the free product are items such as cricket

bat zoom ball story book pencil box biscuits binoculars toy bike cricket

set football and trendy wristwatch which are valued by children Similarly in

case of confectionary products such as chocolates and biscuit the free

products are products relevant to children such as comics sticker toy tattoo

magic paint card and magic candle

In some cases the free gift offered along with the purchase is another product

variant offered by the company For example in case of fruit juice the

consumer is offered the guava flavor fruit juice when heshe buys 5 packs of

orange flavor In case of spices the consumer is offered Kashmiri mirch along

with purchase of the regular spices

Several free gift offers have a pre commitment of size or value of purchase

from the consumer The consumer has to make a certain value of purchase

before he is entitled to the free gift Often there are smaller gifts associated

with purchase of smaller pack sizes and larger gifts associated with purchase

of larger pack sizes of a product In most cases the price of the free gift is not

mentioned The brand name of the free product eg Timex watch or Motorola

handset is mentioned in some cases

3 Sweepstake offer

The sweepstake offer gives the consumer a chance to win a large prize

through luck It ususaly involves a lucky draw or a scratch card based on

which the winners are decided The prizes offered on this promotion can be

broadly classified into two types The first type of prize is a trip to a foreign

82

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 84: Marketing Strategy Opted by the Apollo Tyres1

location eg Paris London Thailand Singapore or Malaysia Many brands

offer a trip to the South Africa World Cup as a promotional attraction The

second type of prize are durable products such as Bike Car Watch Washing

Machine Television Refrigerator DVD Mobile Phone Cordless phone PC

Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a

major appeal as a prize on the sweepstake promotion across diverse product

categories such as soap and

personal computer In some cases the details of the prize on the sweepstake

promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo

4 Buy more and saveget

This type of promotion requires a consumer to buy two or more products to

avail of the promotional advantage The promotional benefit is usually in the

form of money saved as a result of buying two ore more products at the same

time In certain cases the promotion requires the consumer to buy additional

units of the same product to avail of the promotional advantage For example

in case of bath soaps and detergent cakes this promotion requires the

consumer to buy three bath soapsdetergent cakes and get one

soapdetergent cake free In case of fruit juice the consumer is required to buy

5 packs of fruit juice and get one pack of fruit juice free This promotion seems

to be popular in categories where the extra units of the product offered on the

promotion can be stored for future consumption

When different products are bundled together on this promotion there is

usually a relationship between the products For example in case of computer

printers this scheme requires the consumer to buy a printer and scanner

together and get a price reduction In case of consumer durables this scheme

attempts to induce the consumer to buy greater number of products from the

same company For example the scheme requires the consumer to buy AC

and refrigerator or AC and microwave of the same brand and avail a price

reduction In FMCG products this promotion requires the consumer to buy

toothpaste and toothbrush together or buy shaving cream and blade together

to get a price reduction This promotion is seen in case of Fast Food

Restaurants as well where the consumer is required to buy a pizza coke

83

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 85: Marketing Strategy Opted by the Apollo Tyres1

mobile and garlic bread and get a saving on the combination purchase In

case of FMCG products this type of promotion bundles together products that

are use complements

5 Contest offers

Contest offers are seen mostly in products targeted at children In case of

Fast Food restaurant this promotion requires the consumer to fill up a coupon

and get a chance to meet a film star such as Hrithik Roshan In case of soft

drinks the contest offer requires the consumer to answer a question in an ad

and get a chance to meet a movie star In other product categories the prizes

offered on this promotion are similar to those on the sweepstake promotion

The consumer is offered the chance to win a car or a flat or various household

durable appliances

6 Extra Product Offers

Most of the extra product promotions (65) are seen in the FMCG category

where the extra units of product serve as additional consumption units for the

consumer There are no extra product promotions seen in the durables

product category In FMCG the specific products on which the extra product

promotion is launched include Talcum Powder Detergent Cake Soaps Fruit

Juices and Hair Oil In case of toothpaste the promotion requires the

consumer to buy one toothpaste and get the second toothpaste free In a

talcum powder extra product promotion the consumer is offered 20 extra in

the same pack This promotion is also seen in the Services sector In case of

Internet service provider this promotion offers extra hours on the Internet and

free Internet access on Sunday In case of fast Food restaurants the

promotion offers a second pizza free

along with the original pizza or a slice free along with the original pizza

1048707 Other Offers

A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent

promotion in the consumer durable category is the 0 finance scheme for

84

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 86: Marketing Strategy Opted by the Apollo Tyres1

purchase of two wheelers notebookPCs refrigerator music system

television microwave oven 2 wheeler

A different kind of promotion requires the consumer to invest money in order

to avail the promotional benefit In case of fans this sort of promotion requires

the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth

Rs 480 Another such promotion requires the consumer to buy a fan pay Rs

40 and get a free camera worth Rs 300 In case of health drinks the

promotion requires the consumer to pay Rs 7- more and get a badminton

racket free

A variant of this promotion is another promotion which requires an investment

of effort rather than money from the consumer For example in case of tea

the consumer is required to pay Re 1 and get a Britannia biscuit pack free

along with the tea pack In case of salt the consumer is required to collect a

newspaper coupon and pay Re 1 to get a pack of salt

Yet other types of promotions require an investment of both money and effort

from the consumer in order to avail of the promotional benefit For example a

soft drink promotion requires the consumer to collect crowns and put in some

money to get a price discount on the soft drink In case of ice cream the

consumer is required to collect three ice cream wrappers to get a scratch card

which gives him the opportunity to win lakhs of prizes In case of chocolates

the promotion requires a consumer to exchange empty chocolate wrappers to

get movie tickets or bunny stickers free

85

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 87: Marketing Strategy Opted by the Apollo Tyres1

RECOMMENDATION

In the modern world one brand is continuously pitted against the other and

battles are continuously being fought on the parameters of quality reputation

and market share Brands are competing on a one-to-one basis on a regional

national and global level It goes without saying that one of the biggest

developments which defined marketing strategy is brand strategy The entire

packaging of a product or service is in the form of a brandmdashwhich in effect is

one large formationIt was intense competition among the FMCGs on various

fronts that made the multibranding approach very important Whether it is in

soaps TVs apparel or toothpaste segments the endeavour is always to

capture a market with the best possible gross margins One-to-one battles

that are being fought are all in the quest of dominating the gained market

space

Multibranding as a concept and executable marketing paradigm was

pioneered by the FMCGs followed by the consumer durables players It has

now moved on to the packaged food products segment and will soon swamp

the hospitality and other highly service-oriented businesses and sectors

According to our survey suggested that The occupation of the respondents

was very much fluctuating This is done so as to gain more knowledge about

the different strata of the society Also from the result clearly mentioned that

30 people are service man including working in Private firm MNC or multi

national organization While 25 are student because we want to know that

how new generation is aware about the 100 safe parameter Apart from this

10 respondents are house wife a significant number is required because

until or unless house wife is not contributed there views that AC

advertisement would not be successful it also reflected from our survey result

that Here it is quite clear that it is the respondent purchase there product

because of Design is good by 35 where as for issue of price is 15 and the

25 people says they purchasing of AC depends on look wise whether that

product fit for the buyer or not

86

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 88: Marketing Strategy Opted by the Apollo Tyres1

Like any marketing the concept to be sold has to have some value in the

minds of the prospects The first step therefore is to develop a value

proposition No one buys a concept or a product if it has no value for him A

potent question for the hospital mentioned above would have been Why

would our people work harder for accreditation What is in it for them If they

were able to create a valuable enough answer to this question the idea would

have been sold

Second step is to clearly identify the target group Sometimes there may be

many target groups Marketing to each group will differ according to their

preferences skills intellect etc

Third step is to find out various ways to promote the concept Remember you

have to promote the idea in more than one way You may have to use a

combination of various vehicles to promote your idea

APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World

Class Customer Experiencersquo As part of its marketing strategy the company

plans to focus on enhancing its entire value chain which includes technology

quality price delivery and after-sales-service

According to Mr B Thiagarajan senior general manager (corporate

communications and marketing) APOLLO Ltd the company is also

enhancing its focus on some fast-growing segments such as telecom

multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd

is looking for strategic partners to enter into a technological tie-up for high-end

telecom airconditioning equipmentrdquo adds Mr Thiagarajan

For the purpose the company is currently in talks with UK-based Eaton

Williams Group an airconditioning major

On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the

companyrsquos objective is to focus on intangible factors such as views and

feelings of the customers which contribute to a lsquogood customer experiencersquo

87

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 89: Marketing Strategy Opted by the Apollo Tyres1

BIBLIOGRAPHY

Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts

Methods and

Strategies Englewood Cliffs NJ Prentice Hall

Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo

Marketing

Science Vol 14 G122-132

Campbell L and Diamond W D (1990) ldquoFraming and Sales

Promotion the

Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7

pp25-31

Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales

Promotion

Workshop Babson College May 23 1983

Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer

Reactions to Price

Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68

pp 254-270

Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice

of

Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp

494-500

Diamond WD and Campbell L (1989) ldquoThe Framing of Sales

Promotions Effects on

88

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content
Page 90: Marketing Strategy Opted by the Apollo Tyres1

Reference Price Changerdquo Advances in Consumer Research Vol 16

pp 241-247

Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence

on the

Negative Effect of Product Features and Sales Promotion on Brand

Choicerdquo Marketing

Science Vol 13 (1) pp 23-41

Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product

Promotions on

Store Preferencerdquo International Journal of Retail and Distribution

Managementrdquo Vol

28 pp 83-92

89

  • topic Content

APOLLO 16 LUNAR - tothemoon.ser.asu.edutothemoon.ser.asu.edu/files/apollo/apollo_16_lunar_photography.pdf · APOLLO 16 LUNAR PHOTOGRAPHY INTRODUCTION Apollo 16 1754 UT (12:54 (1972-031A)

APOLLO 16 LUNAR - tothemoon.ser.asu.edutothemoon.ser.asu.edu/files/apollo/apollo_16_lunar_photography.pdf · APOLLO 16 LUNAR PHOTOGRAPHY INTRODUCTION Apollo 16 1754 UT (12:54 (1972-031A)

Co-opted Members List

Co-opted Members List

Apollo 13 - peopleplacesandpastimes.com...Apollo 13 Command Module. More Info. Apollo Landing Sites. Apollo 11 Traverses. Apollo 17 Traverses •The Decision to Go to the Moon •May

Apollo 13 - peopleplacesandpastimes.com...Apollo 13 Command Module. More Info. Apollo Landing Sites. Apollo 11 Traverses. Apollo 17 Traverses •The Decision to Go to the Moon •May

apollo - paffoni.be€¦ · apollo La série APOLLO est disponible en: De serie APOLLO is beschikbaar in: CR Chrome Chroom FINITION AFWERKING apollo Deze reeks is Belgaqua gekeurd

apollo - paffoni.be€¦ · apollo La série APOLLO est disponible en: De serie APOLLO is beschikbaar in: CR Chrome Chroom FINITION AFWERKING apollo Deze reeks is Belgaqua gekeurd

Directors' Report and Financial Statements...Mr D Booth (from 27/03/2013) Co-opted Ms A Butler(from 05/04/2013) Co-opted Ms F Gunn Co-opted Mr P R Norman (from 27/03/2013) Co-opted

Directors' Report and Financial Statements...Mr D Booth (from 27/03/2013) Co-opted Ms A Butler(from 05/04/2013) Co-opted Ms F Gunn Co-opted Mr P R Norman (from 27/03/2013) Co-opted

User’s guide for the APOLLO procedure (version 1.1)datasim.ov.ingv.it/download/apollo/manual-apollo-1.1.pdf · 4 1.3 Overview of the APOLLO procedure APOLLO(acronym for Automatic

User’s guide for the APOLLO procedure (version 1.1)datasim.ov.ingv.it/download/apollo/manual-apollo-1.1.pdf · 4 1.3 Overview of the APOLLO procedure APOLLO(acronym for Automatic

Apollo Tyres Vision Overview Products & Partners Chennai Plant Quality Strategy People Quality Talent Acquisition Talent Development Talent Retention.

Apollo Tyres Vision Overview Products & Partners Chennai Plant Quality Strategy People Quality Talent Acquisition Talent Development Talent Retention.

Co-Opted Lookbook

Co-Opted Lookbook

APOLLO. Zeus + Leto ___________|___________ Artemis Apollo.

APOLLO. Zeus + Leto ___________|___________ Artemis Apollo.

APOLLO EXPERIENCE REPORT THERMAL DESIGN OF APOLLO …

APOLLO EXPERIENCE REPORT THERMAL DESIGN OF APOLLO …

Lunar surface exploration strategy · Lunar Surface Exploration Strategy -- LExSWG Final Report, February 1995 3 Exploration legacy of Apollo. We have enough experience in exploring

Lunar surface exploration strategy · Lunar Surface Exploration Strategy -- LExSWG Final Report, February 1995 3 Exploration legacy of Apollo. We have enough experience in exploring

Apollo Tyres Vision Overview Products & Partners Chennai Plant Quality Strategy People Quality

Apollo Tyres Vision Overview Products & Partners Chennai Plant Quality Strategy People Quality

Apollo Apollo Shock installation process ch

Apollo Apollo Shock installation process ch

SPECIAL / APL APOLLO / APL APOLLO OFFICIAL PRODUCTS

SPECIAL / APL APOLLO / APL APOLLO OFFICIAL PRODUCTS

Apollo y Apollo ATI Aireador de Compuertas

Apollo y Apollo ATI Aireador de Compuertas

Apollo Hosptals enterprise ltd- Fixed Depositmyraandcompany.in/downloads/fixed_deposits/Apollo... · 2020. 10. 5. · Apollo Hospitals CHENNAI — touching lives APOLLO HOSPITALS

Apollo Hosptals enterprise ltd- Fixed Depositmyraandcompany.in/downloads/fixed_deposits/Apollo... · 2020. 10. 5. · Apollo Hospitals CHENNAI — touching lives APOLLO HOSPITALS

Apollo Training Apollo Spacecraft and Systems Familiarization

Apollo Training Apollo Spacecraft and Systems Familiarization

Apollo Tyres India Ltd.’s Growth Strategy: Treading Global Markets

Apollo Tyres India Ltd.’s Growth Strategy: Treading Global Markets

Apollo Apollo Scott Brown | Andrew Levy. 350 Mission Introduction | Lighting Design | Lighting Controls | Energy Savings | Conclusions Apollo Apollo.

Apollo Apollo Scott Brown | Andrew Levy. 350 Mission Introduction | Lighting Design | Lighting Controls | Energy Savings | Conclusions Apollo Apollo.

valves abbr141g - Apollo Valves abbr141g - Apollo Valves

valves abbr141g - Apollo Valves abbr141g - Apollo Valves