Social Marketing

Submitted in partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION Session- 2011-13

Submitted To - Submitted By -

Ms. Riya Sharma Baljit singhMAIT Geet Goel Kavita Nikhita Sood

Reetika GuptaSapan Suri

Sonali Puri Sudhanshu Kapoor

Vibhor Jain

MAHARAJA AGRESEN INSTITUTE OF TECHNOLOGY

 (ISO 9001:2008 Certified and AICTE NBA Accredited)

PSP Area, Plot No. 1, Sector-22, Rohini, Delhi-10086 Ph: 011- 27582283

Website: http://www.mait.ac.in

SOCIAL MARKETING Page 1

Acknowledgement

 

The present report is based on “Social Marketing”. We owe great thanks to all the people who helped and supported us during the execution of this project.

Our deep sense of gratitude to Ms. RIYA , , for her support and guidance. We thank her for guiding and correcting various documents with great attention and care. She has taken pains to go through the project and provide her valuable suggestions at every step.

We express our thanks to the Director General, Dr. N.K. Kakkar, MAHARAJA AGRASEN INSTITUTE OF TECHNOLOGY, Rohini for extending his support.

SUBMITTED BY:

Baljit singhGeet GoelKavitaNikhita SoodReetika GuptaSapan SuriSonali PuriSudhanshu Kapoor Vibhor Jain

SOCIAL MARKETING Page 2

EXECUTIVE SUMMARY

This report is an attempt to study and understand how social marketing changes the consumer buying behaviour & how ITC is able to survive in the market by leaving an impression on consumer’s minds by contributing towards the society.

Questions like: Why people are buying the products? What all the things which influences them to buy? Etc gives a clear view of impact of SOCIAL MARKETING ON CONSUMER BEHAVIOUR.

We used a sample size of 90 with a set of few questions about knowing the company ITC, social initiatives taken by the company, changing image of ITC and TATA and HUL as the main competitors of ITC.

Social Marketing is basically for individual or societal benefit (rather than corporate benefit or profit). But at the end, we concluded through our study that a majority of consumers believe that social marketing is a strategy to promote their brand value and image and to build a good will in the market. We also found that majority of the consumers are not willing to pay extra cost for this step taken y the company. Moreover, a large population size believe that Other companies like TATA and HUL are excelling better in the field of social marketing than ITC.

SOCIAL MARKETING Page 3

TABLE OF CONTENTS

SECTION 1: INTRODUCTION

Introduction to social marketing 6

Introduction to ITC 9

Social Marketing by ITC 10

SECTION 2: OBJECTIVE

Objective 13

SECTION 3: RESEARCH METHODOLOGY

Research Methodology 17

SECTION 4: ANALYSIS

Analysis 20

SECTION 5: BENCHMARK

Awards 26

SECTION 6: ANNEXURES

Questionnaire 29

SECTION 7: BIBLIOGRAPHY

Bibliography 32

SOCIAL MARKETING Page 4

SECTION 1

INTRODUCTION

SOCIAL MARKETING Page 5

Social Marketing

Introduction

Process for influencing human behaviour on a large scale, using marketing principles for the purpose of societal benefit rather than commercial profit.

Social marketing is basically applying commercial marketing principles to health and human service programs.

Bottom Line: Behaviour change for societal benefit—not profit.

Everything you do should be in the service of behaviour change.

Few Examples:

Speed thrills but kills. Save Girl Child Save Water Say no to Drugs Fuel Prices drop by 50% for Car Poolers only!

Social Marketing Requires:

A “customer” focused approach.

A voluntary behaviour change

An exchange

Individual or societal benefit

Misconception about Social Marketing

Not social advertising Not promotion or media outreach only Not about coercing behaviours(through force or punishment)

SOCIAL MARKETING Page 6

The primary aim of social marketing is "social good", while in "commercial marketing" the aim is primarily "financial". This does not mean that commercial marketers can not contribute to achievement of social good.

History of Social Marketing

Social marketing began as a formal discipline in 1971, with the publication of "Social Marketing: An Approach to Planned Social Change" in the Journal of Marketing by marketing experts Philip Kotler and Gerald Zaltman. However, earlier, social marketing had already been used as a tool for birth control in India, where a persuasion-based approach was favoured over a legislative approach.

Craig Lefebvre and June Flora introduced social marketing to the public health community in 1988, where it has been most widely used and explored. They noted that there was a need for "large scale, broad-based, behaviour change focused programs" to improve public health (the community wide prevention of cardiovascular diseases in their respective projects), and outlined eight essential components of social marketing that still hold today. They are:

1. A consumer orientation to realize organizational (social) goals2. An emphasis on the voluntary exchanges of goods and services between

providers and consumers3. Research in audience analysis and segmentation strategies4. The use of formative research in product and message design and the

pretesting of these materials5. An analysis of distribution (or communication) channels6. Use of the marketing mix—utilizing and blending product, price, place

and promotion characteristics in intervention planning and implementation7. A process tracking system with both integrative and control functions8. A management process that involves problem analysis, planning,

implementation and feedback functions

Speaking of what they termed "social change campaigns", Kotler and Ned Roberto introduced the subject by writing, "A social change campaign is an organized effort conducted by one group (the change agent) which attempts to persuade others (the target adopters) to accept, modify, or abandon certain ideas,

SOCIAL MARKETING Page 7

attitudes, practices or behaviour." Their 1989 text was updated in 2002 by Philip Kotler, Ned Roberto and Nancy Lee. In 2005, University of Stirling was the first university to open a dedicated research institute to Social Marketing, while in 2007, Middlesex University became the first university to offer a specialized postgraduate programme in Health & Social Marketing.

In recent years there has been an important development to distinguish between "strategic social marketing" and "operational social marketing".

Much of the literature and case examples focus on operational social marketing, using it to achieve specific behavioural goals in relation to different audiences and topics. However there has been increasing efforts to ensure social marketing goes "upstream" and is used much more strategically to inform both "policy formulation" and "strategy development".

Here the focus is less on specific audience and topic work but uses strong customer understanding and insight to inform and guide effective policy and strategy development

SOCIAL MARKETING Page 8

Introduction about ITC

ITC is an Indian public conglomerate company headquartered in Kolkata, West Bengal, India(Aug 24, 1910).

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.

It started off as the Imperial Tobacco Company, and shares ancestry with Imperial Tobacco of the United Kingdom, but it is now fully independent, and was renamed to Indian Tobacco Company in 1970 and then to I.T.C. Limited in 1974.

ITC's annual turnover stood at $7 billion and market capitalization of over $33 billion in 2010.

 ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by BusinessWorld and among India's Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week.

ITC employs over 26,000 people at more than 60 locations across India & more than 4,23,000 shareholders.

ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade).

SOCIAL MARKETING Page 9

Social Initiatives by ITC:

1) e-Choupal

The unique e-Choupal model creates a significant two-way multi-dimensional channel which can efficiently carry products and services into and out of rural India, while recovering the associated costs through agri-sourcing led efficiencies. This initiative now comprises about 6500 installations covering nearly 40,000 villages and serving over 4 million farmers.

2). Social & farm Forestry

ITC has helped to bring nearly 13,000 hectares of wasteland under social forestry benefiting more than 16,000 poor households in 466 villages. ITC’s social forestry programme simultaneously addresses the livelihood problems of marginal farmers and the ecological imperative of regenerating biomass and nurturing depleted soils

SOCIAL MARKETING Page 10

3). Watershed Development

ITC’s watershed initiatives have led to an improvement in soil and moisture regimes – there is more land under irrigation, water tables have risen and farmers can harvest more than one crop, making it possible to live off the land round the year

4). Agricultural Development

ITC offers facilitation to farmers to form agri-business societies, pool knowledge and resources, improve productivity and quality, and reach out beyond local markets to sell at better margins.

5). Women Empowerment

SOCIAL MARKETING Page 11

The confidence and skills generated among women by forming credit groups and managing businesses become assets to their communities.

6). Livestock Development

The milk marketing co-operatives represent exemplary change in rural enterprise, awayfrom dependence on agriculture and local markets.

7). Primary Education

SOCIAL MARKETING Page 12

School going becomes an empowering process for the child and the community. The awareness of entitlements like education and health grows, along with a sense of the community’s responsibility.ITC made its entry into the stationery business in 2002 with its premium range of notebooks, followed in the year 2003 with the more popular range to augment its offering. ITC's stationery Brands are marketed as "Classmate" and "Paperkraft", with Classmate addressing the needs of school goers and Paperkraft targeted towards college students and executives.

8). Small-Scale and Cottage Units

As part of ITC's business strategy of creating multiple drivers of growth in the FMCG sector, the Company commenced marketing Agarbattis (incense sticks) sourced from small-scale and cottage units in 2003.

SOCIAL MARKETING Page 13

SECTION 2

OBJECTIVE

OBJECTIVE

SOCIAL MARKETING Page 14

The primary objective of this study is to understand how social marketing changes the consumer buying behavior & to systematically explore the determinants responsible for the competitive advantage of ITC Limited and how ITC is able to survive in the market by leaving an impression on consumer’s minds by contributing towards the society.

Why people are buying the products?What all the things which influences them to buy?Whether or not ITC is able to change its impression from being a company

mainly known for Cigarette business earlier to a public conglomerate?

Further in this report we are covering: Various aspects of Social marketing. Social marketing practices exercised by ITC. Practical knowledge and understanding to about the topic. Evaluating how social marketing influence the consumer buying

behaviour.

SOCIAL MARKETING Page 15

SECTION 3RESEARCH METHEDOLOGY

Research Methodology

SOCIAL MARKETING Page 16

Universe:.

The people within the age group of 18 years to 60 years were the universe.

Population:

The main emphasis of the study was on the general public, both customers and non customers of the products of ITC LTD.

Research Design

The research design of this project is exploratory. It has the goal of formulating problems more precisely, clarifying concepts, gathering explanations, gaining insight, eliminating impractical ideas, and formulating hypothesis.

Selection of Sample Size:

For the survey, a sample size of 90 has been taken into consideration.

Sampling Technique Used:

This research has used convenience sampling technique.

Convenience sampling technique: Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient. . It is a non-probability sample. This is the least reliable design but normally the cheapest and easiest to conduct .In this method Researcher have the freedom to choose whomever they find, thus the name convenience. Example includes informal pools of friends and neighbors or people responding to a newspaper’s invitation for readers to state their position on some public issue.

Instrument for data collection

SOCIAL MARKETING Page 17

The main statistical tool used for the collection and analyses of data in this project is:

Questionnaire.

The questionnaires were used as an instrumentation technique, because it is an important method of data collection. The success of the questionnaire method in collecting the information depends largely on proper drafting. So in the present study questions were arranged and interconnected logically. The structured questionnaire will reduce both interviewers and interpreters bias.

Further, coding and analysis was done for each question’s response to reach into findings, suggestions and finally to the conclusion about the topic.

Limitations of study:

Although the study was carried out with extreme enthusiasm and careful planning there are several limitations, which handicapped the research. Due to the following unavoidable and uncontrollable factors, the result might not be accurate. Some of the problems faced while conducting the survey are as follows:-

1. Time Constraints:The time stipulated for the project to be completed is less and thus there are chances that some information might have been left out, however due care is taken to include all the relevant information needed.

2. Sample size:Due to time constraints the sample size was relatively small and would definitely have been more representative if I had collected information from more respondents.

3. Accuracy:It is difficult to know if all the respondents gave accurate information; some respondents tend to give misleading information.

4. It was difficult to find respondents as they were busy in their schedule, and collection of data was very difficult. Therefore, the study had to be carried out based on the availability of respondents.

SOCIAL MARKETING Page 18

SECTION 4

DATA COLLECTION

AND ANALYSIS

ANALYSIS

SOCIAL MARKETING Page 19

As per observation, 92% of the consumers were aware of the company and 8% were not aware of it.Therefore, we can interpret that ITC is very popular company and is known among the consumers.

According to our survey, 79% consumers knew about the social initiatives taken by the company. Rest were unaware of it.

Social Marketing applies the principles of marketing to address social problems by influencing behavior change.Social marketing can be applied to

SOCIAL MARKETING Page 20

promote merit goods, or to make a society avoid goods which have negative impact and thus promote society's well being as a whole.

Among the 79% consumers who knew about the social initiatives of the company, around 43% consumers are aware of e-choupal and primary education. Very few consumers were aware of social & farm forestry, watershed development and Livestock Development. Above all this, 12% consumers knew all the social marketing done by ITC.

SOCIAL MARKETING Page 21

In our survey we found that 57% consumers were ready to pay extra cost for the product associated with social initiative. And 36% was not in favour of paying extra money. Therefore the company has also need to think about these consumers as 36% is not a small population.

Social marketing is basically for individual or societal benefit (rather than corporate benefit or profit). But we found that only 7% consumers believe that it is for benefit of the society whereas 61% consumers consider it as both a promotional strategies and benefiting the society. Moreover 21% think it’s only a promotional strategy.

SOCIAL MARKETING Page 22

Therefore a majority of consumers believe that social marketing is a strategy to promote their brand value and image and to build a good will in the market.

74% consumers think that ITC Company has changed their impression from being only a tobacco company to public conglomerate. This means ITC has been so far been successful in changing its image and has put a great impact on consumers.

According to our survey, 51% consumers believe that other companies do better in the field of social marketing as compared to ITC .Whereas 40% consumers do not have any idea about this.

SOCIAL MARKETING Page 23

Since a large size of population thinks other companies are doing better, so ITC need to be aware of its competitors as social marketing is a great tool to attract consumer.

Of 51% consumers who think that other companies are doing better in social marketing, 44% believes that TATA has set a benchmark in this field and excelling good. Remaining consumers also voted for companies like PepsiCo, HUL, and Procter and Gamble.Therefore, the main competitors of ITC in the field of social marketing are TATA and HUL.

SOCIAL MARKETING Page 24

SECTION 5BENCHMARK

SOCIAL MARKETING Page 25

Awards, Accolades and Best Practices by ITC

ITC's Agri Business Division, one of India's largest exporters of agricultural commodities, has conceived e-Choupal as a more efficient supply chain aimed at delivering value to its customers around the world on a sustainable basis. The e-Choupal model has been specifically designed to tackle the challenges posed by the unique features of Indian agriculture, characterised by fragmented farms, weak infrastructure and the involvement of numerous intermediaries, among others.

Such a market-led business model can enhance the competitiveness of Indian agriculture and trigger a virtuous cycle of higher productivity, higher incomes, enlarged capacity for farmer risk management, larger investments and higher quality and productivity.Further, a growth in rural incomes will also unleash the latent demand for industrial goods so necessary for the continued growth of the Indian economy. This will create another virtuous cycle propelling the economy into a higher growth trajectory.

ITC won numerous awards for taking such initiative like E-Choupal namely, ITC e-Choupal won the Stockholm Challenge Award (2006), ITC was the first Indian company and second in the world to win the Development Gateway Award for its trail-blazing e-Choupal initiative (2005). ITC won the prestigious Corporate Social Responsibility Award from The Energy and Resources Institute (TERI) for its e-Choupal initiative (2005). ITC’s e-Choupal initiative won the Inaugural World Business Award at Marrakesh (2004).

ITC has known for his work towards helping and play major role in development of the country. Setting up an another benchmark, ITC has won the inaugural 'World Business Award', the worldwide business award recognising companies who have made significant efforts to create sustainable Chamber of Commerce (ICC) and the HRH Prince of Wales livelihood opportunities and enduring wealth in developing countries. The award has been instituted

SOCIAL MARKETING Page 26

International Business Leaders Forum (IBLF). jointly by the United Nations Development Programme (UNDP), International

ITC, an global conglomerate also helped nation to build its natural, economic and social capital. To recognize this effort towards the nation ITC was awards by FICCI outstanding vision corporate Triple Impact Award which was presented by the Prime Minister (2008).

SOCIAL MARKETING Page 27

SECTION 6ANNEXURE

SOCIAL MARKETING Page 28

SOCIAL MARKETING

QUESTIONNAIRE

Tick the relevant answer (can be more than one also).

NAME: ___________________________________________________

PROFESSION: _____________________________________________

AGE: ______________________________________________________

Q1). Are you aware of ITC?

Yes No

Q2). Are you aware of the social initiative taken by the company?

Yes No

Q3). If yes, which of the following are known by you?

e-choupal Agri-business Social & Farm forestry Watershed development Women empowerment Primary education Livestock development All of the above None of these

Q4). Are you willing to pay extra cost for the product associated with social marketing?

Yes No

SOCIAL MARKETING Page 29

Q5). In your opinion, Social Marketing done by ITC Company is 

A promotional strategy Benefiting the society Both of them None of these

Q6). Do you think ITC has changed its impression from being a Tobacco company to public conglomerate?

Yes No Can’t say

Q7). In your opinion, is any other company doing better in social marketing?

Yes No Can’t say

Q8). If yes, which company you think is performing better in social marketing?

TATA HUL Proctor & gamble PepsiCo Any other

SOCIAL MARKETING Page 30

SECTION 7

BIBLIOGRAPHY

SOCIAL MARKETING Page 31

BIBLIOGRAPHY

Books :

Marketing Management by Philip Kotler and Kelvin Lane keller.Marketing Research by naresh K. Malhotra and Satyabhusan Das.The Old Rules of Marketing Are Dead – Timothy Pearson50 Ways to Better Social Media: Making Solid Connections That Create

Dynamic Opportunities – Melissa Giovagnoli Wilson, Nancy Marmolejo  and Kerry

LaCosteThe Social Media Survival Guide: Strategies, Tactics, and Tools for

Succeeding in the Social Web – Deltina Hay

Links :

en.wikipedia.org/wiki/Social_marketing

www.social-marketing.com

www.cdc.gov/dnpa/socialmarketing

www.itcportal.com

en.wikipedia.org/wiki/ITC_Limited

www.facebook.com/ITCMobileMarketingFresno?sk=wall filter=2

• www.itcportal.com › Businesses › Agri Business

SOCIAL MARKETING Page 32