nutcracker marketing

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Name Email Id Phone Number Sukhada Dhone [email protected] .in 8884111657 Rohit Jaiswal [email protected] .in 7676990235 Prachi Patil [email protected]. 8095079460 TEAM NAME: NUTCRACKERS CAMPUS: IIMB MARICO OVER THE WALL A Marketing Case Study on Acquisition of Personal Care Brands of Paras from Reckitt Benck

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Page 1: Nutcracker marketing

Name Email Id Phone Number

Sukhada Dhone [email protected] 8884111657

Rohit Jaiswal [email protected] 7676990235

Prachi Patil [email protected] 8095079460

TEAM NAME: NUTCRACKERSCAMPUS: IIMB

MARICO OVER THE WALLA Marketing Case Study on Acquisition of Personal Care Brands of Paras from Reckitt Benckiser

Page 2: Nutcracker marketing

METHODOLOGYContext analysis

• Understanding the industry• Study of Livon offering versus Silk n Shine• Insights for serum category• Implications for Livon

Segmentation & targetin

g

• Identifying relevant segments – demographics, psychographics and needs for the category

• Choosing the target segment based on motivation to buy Livon

Positioning

• Identifying loopholes in current strategy and shift in strategy needed• Outlining a modified positioning for Livon

Execution

Strategy

• Strategy for Integrated marketing communications across different channels• Other recommendations

Page 3: Nutcracker marketing

CONTEXT ANALYSIS TARGETING POSITIONING BRANDING STRATEGYSEGMENTATION

Market Size

About the industry• Hair care increased by 18% to reach Rs. 116 billion• Conditioners including oils and rinse-out conditioners were largest contributors

of retail value sales – HUL and L’oreal offered free trial packs with shampoos -> generated awareness about benefits of conditioners & promoted sales

• Most manufacturers have continued to push their hair care products through Television

• Hair care is expected to further evolve with consumers paying more attention to their hair

• Increasing unit prices due to manufacturers offering value added benefits• New product launches are expected to have newer claims, solving various unmet

needs Other Inferences from exhibits given the case

• 74% of the users of Livon silky potion users belong to 40+ years

• Consumers evolve with their life stages in terms of attritudes, motives with respect to the category

Leave in conditioners is still an under-developed category as compared to rinse off conditioners even though there is significant overlap in their propositions

Leave in conditioners category is still in the Introduction phase in the product lifecycle

Secondary analysis has been done to understand the nature of the industry and other inferences regarding the landscape to set the context right

HAIR CARE Industry Analysis

6% 1%

93%

Rinse off condi-tionersLeave in condi-tionerAny hair care products

Source: Euromonitor Reports

Page 4: Nutcracker marketing

Serum Livon0%

20%40%60%80%

YesNo

Primary analysis (online survey and in-depth interview) and Secondary analysis of Livon has been done to understand the brand image and identity

Silk and Shine Analysis

Strong association of Livon with shine and detangling features

High top-of-the-mind recall for Livon compared to hair and care silk and shine

Livon is perceived as

a premium and high end brand for occasional purchase

Livon is currently perceived as high detangling feature which conditioner also provides

Because of thick liquid its is perceived as greasy

Good QUALITY

First word that comes to your mind when you hear ‘Livon’ ?

Have you heard of “Serum/leave in conditioner”?Have you heard of “Livon”?

What is the first brand that comes to your mind when you hear “Serum”?Livon – 40%Don’t know – 40%

Shine

credible

Premium

Detangles

GreasyPioneer

Occasional use

technology

Brand LivonCentral

Character Young girlSetting In Home

Influencer NarratorTri components Cognitive component of de-

tangled hairBenefits

highlighted Functional

InvolvementModerate involvement in terms of medium, low involvement in terms of product category

Personality Traits, Values

Self-directed needs, High need for uniqueness, sensation seeking, High Need For Cognition

Tagline I love my hair

Communications analysis

Brand analysis – Primary Research

Young girls

After wash

CONTEXT ANALYSIS TARGETING POSITIONING BRANDING STRATEGYSEGMENTATION

Page 5: Nutcracker marketing

Serum Silk n Shine

0%

40%

80%

YesNo

Primary analysis (online survey and in-depth interview) and Secondary analysis of Silk n Shine has been done to understand the brand image and identity vis-à-vis Livon

Silk and Shine Analysis

Strong association of silk and shine with shine and detangling features

Low top-of-the-mind recall for Livon compared to hair and care silk and shine

It is perceived as a

not so high end brand for occasional purchase

High detangling feature which conditioner also provides is the most recalled feature

Good QUALITY

First word that comes to your mind when you hear ‘Silk n Shine’ ?

Have you heard of “Serum/leave in conditioner”?Have you heard of “Silk n Shine”?

What is the first brand that comes to your mind when you hear “Serum”?

Shine

KATRINA

credible

generic

Detangles

Hair carenew

Occasional use

salon

Brand LivonCentral

Character Young girlSetting In Home/salon

Influencer Celebrity – Katrina KaifTri components Cognitive component of de-

tangled hairBenefits

highlighted Functional

InvolvementModerate involvement in terms of medium, low involvement in terms of product category

Personality Traits, Values

Self-directed needs, High need for uniqueness, sensation seeking, High Need For Cognition

Tagline Ab uljhe baalon se ladaai khatam

Communications analysis

Silk n Shine– 30%Don’t know – 40%

Tangle free

softsilky

Brand analysis – Primary Research

CONTEXT ANALYSIS TARGETING POSITIONING BRANDING STRATEGYSEGMENTATION

Page 6: Nutcracker marketing

A summary of the brand analysis of the 2 brands is put in comparative way to understand the differences between Livon and Silk n Shine

Comparative Analysis

Implications:• Livon and Silk and Shine together capture

80% of the market share

• But propositions of Livon and Silk and Shine are almost

similar• This would result in cannibalization of the 2

products• Hence, need to

establish a different proposition for Livon

which would target different target

segments

Parameters Livon Silk and Shine

Target Segment Young, professional girls Young girls

Positioning Soft, silky detangled hair

Silky, detangled hair

Communications message

Functional benefits – Narrating young woman

Functional benefits - Celebrity endorsement

Benefits provided

Detangled Detangled

Soft Soft

Silky shining Silky shining

Style Style

Different Quite similar Fully similar

CONTEXT ANALYSIS TARGETING POSITIONING BRANDING STRATEGYSEGMENTATION

Comparison

Page 7: Nutcracker marketing

CONTEXT ANALYSIS SEGMENTATION TARGETING POSITIONING BRANDING STRATEGYCONSUMER INSIGHTS

Primary research has been done to obtain insights as to why is the growth of Serum category so slow as compared to the other categories in hair care

Insights on impeding growth of Serum category

1)I don’t know what serum is2)I don’t know the benefits of serum category

1)I don’t think it is essential2)I think it gives same benefits as conditioner3)None of my friends recommended me serum4)My hairdresser never recommended me to use serum5)I think it is only for high end segment6)I think it is styling product7)I have no time to use many products considering busy life style

1)I find it expensive2)I think it will make my hair greasy3)I think it will damage my hair

TV ads, Print ads, Social media

Recommendation through friends and hairdressers

Products DemosFree samplingBundling

Awareness

Consideration

Purchase

To obtain the insights on impeding growth of serum category, the following primary research was conducted:•Online survey – 53 respondents, tier 1, 2 cities, 16-45 years of age•In depth interview – 2 groups of 8 each, tier 1 cities, 16-45 years of age

Primary ResearchPath to purchase

CONTEXT ANALYSIS TARGETING POSITIONING BRANDING STRATEGYSEGMENTATION

Page 8: Nutcracker marketing

Psychographic Segmentation was done based on the level of motivation and stated/latent need level of consumers with respect to buying the products in the category.

Demographics

Psychographics

Needs in the category

Fabulous Me

Age: 16-25, Young College going girls

Career- oriented, Attitude towards

enjoying life, Willing to spend money on

leisure activities and high tech

products, Strong Movie and Cricket

associations

I want to be the trendsetter!

I like to be in the center of attention and shine

with my style

Reassure Me

Age: 20-35, Involved in fast-growing

businesses, moderate assets, Middle class

Living in Tier 1 or tier2 cities

Mix of traditional and modern values,

Value-conscious, Information seekers,

family oriented, Value for money

products with less show off value

“I look for value for money options

Conservative Me

Age: Age: 30-50, First generation with

modern affluence through education,

Clerical jobs

Traditional values - diligence, moderate

individualism, Need to blend in with social group of middle

class

Focus on price “Less is more“

Harmonious Me

Age: 25-40, Education from Elite schools,

Managers, Senior executives, elite and luxurious lifestyle,

High Income

Sophisticated, Successful in life, Seek best in class

products, Buy products for social status

High users of durables, Best in class Product,

Sophisticated products with show off value

CONTEXT ANALYSIS TARGETING POSITIONING BRANDING STRATEGYSEGMENTATION

Page 9: Nutcracker marketing

Target segment was decided based on the motivation to buy Livon serum among all the identified segments

Need basedReassure me

Segments Fabulous Me Reassure Me Conservative Me Harmonious MeMotivation to

buy serum from Livon

Willing to experiment or try serum etc but

lies in target segment for Silk and Shine

Willing to buy if convinced about benefits of using serum for their target

group

Low motivation to buy Livon due to perception

of very high financial risk

Low motivation to use non high end products

VerdictNot to be targeted High motivation if

convinced on emotional + functional benefits

Low motivation to buy Livon

Low motivation to buy Livon

Target

Based on the habits and practices of the consumer for the category and our product offering, the target segment is chosen:

CONTEXT ANALYSIS TARGETING POSITIONING BRANDING STRATEGYSEGMENTATION

Target consumer group for Livon

Page 10: Nutcracker marketing

The shift in strategy needed for Livon was identified from the current strategy

Shift in strategy needed

CONTEXT ANALYSIS TARGETING POSITIONING BRANDING STRATEGYSEGMENTATION

• No emotional touch, only functional benefits are depicted• Consumers are least bothered about what chemicals ( Cutisoft) are

presents but wants to know the final benefits• How to apply the product is not mentioned • No emphasis on daily usage• Detangling and softness are two benefits which are shown in advertisement

which overlaps with conditioners’ benefits • The spokesperson in advertisement is very glamorous so consumers

associate Livon with occasional usage • Background is fictional so generates less relevance also gives premium

image to product

• Give emotional touch to the advertisement • Focus on benefits rather than chemicals and formulas present in product• Show the correct target group so that they get attracted to advertisement • Emphasis on daily usage of the product like Damp, Damp, Dazzle ad• Considering the low knowledge and penetration of serum category application

method has to be is shown• Focus on unmet needs rather than needs fulfilled by conditioners and shampoos• Show homely environment so that relevance towards category increases • Make sure that friend is shown as adviser in advertisement to make it more

influential

Shift in Strategy Needed

Page 11: Nutcracker marketing

A survey was conducted to understand the consumer behaviour towards serum’s. Survey responses were collected from 63 urban respondents belonging to SEC AB

What FEATURES to be highlighted?Methodology – Online survey No of respondents – 43 Age group – 20-40 years

Respondents were asked to rate the top three needs they look for in the serum category out of 9 universe of needs that are found out of in-depth interview analysis

Need Gap Analysis : To find out what benefits to be portrayed in advertisements Universe of Needs

Conditioner

Shampoo

Silk and Shine

Livon

Frizz control No Yes No NoNatural Healthy look

No No No GAP

Nourishment No Yes Yes NoStrength (Anti hair fall)

No Yes No No

Style No No Yes YesShine No Yes Yes YesDetangling Yes Yes Yes YesAvoid split-ends No Few No GAPSoftness Yes Yes Yes Yes• Friend is a person who influences the consumers in Hair category who is followed by hairdresser• Women are not considering serum because most of the benefits depicted are fulfilled by Shampoo and conditioner• Natural healthy look is what all women love to have like childhood days ( considering % of chemically treated hair in target

segment)• Women are not able to associate Livon with daily use category but consider it as after hair wash product or styling

product

1st 2nd 3rd Cummulative

2111 14

46

13 12 8

33

9 7 8

24

% of respondents Natural Healthy look Frizz Control Anti split ends

Styling Product

After Hair wash product

Daily use product

31%43%

26%

What is Serum

Advertisements Friends Hairdresser Family Shopkeeper

12%

42%31%

10%5%

Purchase influencer in serum category

Greasy Non- greasy

61%

39%

Perception

CONTEXT ANALYSIS TARGETING POSITIONING BRANDING STRATEGYSEGMENTATION

Page 12: Nutcracker marketing

Insights on the psychographics for the target segment were obtained to understand what kind of positioning should be done

What should be theme of message?

Busy lifestyle makes me ignore myself

I wish I get back the hair I used to have

in childhood

With days the healthy look

vanished

I use to take care of my hair

when I was young

I used to get irritated when my mom tied different

color bow which doesn’t match my

dress

I don’t leave my hair open now while in childhood I used to fight with my dad when he asked me to tie it up

Childhood I used to try out new

hairstyles with my doll

I think serum’s benefits are

same as that of conditioner

I think serum is styling product

and not for everyday use

CONTEXT ANALYSIS TARGETING POSITIONING BRANDING STRATEGYSEGMENTATION

Page 13: Nutcracker marketing

Based on our analysis we found out that positioning of Silk and Shine exactly matches with the positioning of Livon hair serum

Positioning

Analyse Livon’s brand

image + identity

Target – ‘Reassure Me’

Recap

Consumer insights

Positioning for Livon

Differentiating space in

perceptual map

Functional Benefits

Emotional benefits

YoungProfessional Current

Proposed

CONTEXT ANALYSIS TARGETING POSITIONING BRANDING STRATEGYSEGMENTATION

Livon Silky Potion should be positioned as“30 seconds Final Touch-up to get Natural healthy hair for daily use”

“I love my hair” is a great tagline and has good connect with the consumer. Hence it should be continued

30 Seconds Final

Touch-up

Page 14: Nutcracker marketing

Understanding the right set of Media and Influencer in Purchase decision is the first step to develop a 360 degree Integrated Marketing Campaign

Integrated Marketing Campaign – Strategy

TV

• Still it’s one of the major medium of advertisement

•TG watches reality shows and even Soaps

Digital & Social Media [FB, Blog, Forums, twitter,

pinterest] •TG Spends 21% time of online activity on Facebook

•Prefer personal blogs over magazines as written by people rather than journalists

•Famous blogs – Rynablog, makeupandbeautyblog, etc.

•Follow stylist on Twitter and Pinterest

•Checks review sites to evaluate brand

Mobile Apps

•A new media consumption channel.

•Apps are dominantly used on mobiles rather than browser

Print [Newspaper

& Magazines]

•Fashion Magazines are still a common leisure activity

•Vogue, Elle, Cosmopoliton, Beauty, etc.

Media Consumption habits of TG (Src: InMobi Report)

23% 22% 18% 10%

Develop Insights

Create IMC Plan

Allocate IMC

Budget

Capture Response

s and maintain database

Analyze and

evaluate results

Word of Mouth [Influencers]

•The Parlour stylist, retailer have decent credibility

•Friends are the biggest influencer in this category

ExperientialMarketing

•Demonstration on self or others creates trial in this category

•Mall and Event campaigns

Point of Sale[In-store

Activation]

•High disposable income of TG

•Right exposure at POS can be the moment of truth.

•Impulse buying of trial pack

Influencers for Hair care category (Survey)45% 10

% 30%

Promotion Channel Synergy

Communication Message

•Clear•Consistent•Aligned to Brand Value

Customer Engagemen

t

Cost effective

Campaigns

Focus

IMC Process

CONTEXT ANALYSIS TARGETING POSITIONING BRANDING STRATEGYSEGMENTATION

Page 15: Nutcracker marketing

• 30 seconds Final Touch-up• Natural healthy hair No harmful chemicals – focus

on Vitamin E (health connotation)• Daily use

1. Increase Awareness and benefits2. Burst myths and perception of harmful

chemicals3. Increase aspirational quotient of product4. Slowly move to Emotional Connect from

Functional

Clear insights, aim and message of campaign. Idea is to create emotional connect with chosen 360 degree IMC channels

Integrated Marketing Campaign – Strategy

1. Friends and Stylists are the biggest Influencer for TG.

2. TG lacks time to take care of hair routinely.3. Concerns about harmful chemicals and

being greasyAim

Insights

IMC

TVC

Hair GroomingApp

Digital &Social MediaCampaign

WOM enablingParlors

FashionMagazines

POSpromotion

Experiential Marketing

IMCChann

els

Message

• Hair Nostalgia: reminding the TG how she used to take care of her hair from school to college life. With Livon, she can take care of her hair and can look anytime, any where.

• Emotional Connect• Symbolized by photographs of Childhood and Youth

Idea

CONTEXT ANALYSIS TARGETING POSITIONING BRANDING STRATEGYSEGMENTATION

Page 16: Nutcracker marketing

TV is highest in media consumption. TV Commercial to reach TG in the target programs like Reality shows and Lifestyle program

1. Friends are the biggest Influencer for TG. 2. TG lacks time to take care of hair routinely.Hair Nostalgia: reminding the TG how she used to take care of her hair from school to college life. She can quickly look fab with Livon, anytime any where. Emotional Connect. A friend Livi of a working married woman Arti is

visiting her after a long time and are flipping through old photos. Arti had very beautiful hair and she never used to tie them. She diligently used to take care of it and never let anyone touch it. All fun-time flashes. Now Arti’s hair are dull and she keeps them tied. Livi asks what happened! Arti says, “time kahan hai ab: office, ghar, bas”. Then Livi takes out Livon from her purse and gives it to Arti. Arti asks “yeh kya”, Livi says “Mera 30 seconds Final Touch-up”. Background voice tells the benefits of Livon and why use it while Arti applies Livon and frees her hair. A picture gets clicked and gets added to her album with Livon.

Profile Program Occasion When

Married working women

Reality Shows When she returns to home and works

Evening Prime time

Lifestyle shows Leisure time Weekends morning and afternoon

Housewife Soaps, Repeats She has control on remote in afternoon

Weekday afternoon Prime time

Key Decision- Why & When to air the advertisement?

•During a reality show then it should be aired at the end of advertising slots, because people would do not want to miss out on critical decisions aired right after the break•Also the first advertisement break during shows across various channels tends to coincide.

1st Commercial Break2nd Commercial Break

Migration from the channelMigration to the channel

Air the TVC during the 1st commercial break or during the last 30 sec slots of commercial breaks

IMC – TV Commercial

Idea

Insights

Storyboard

CONTEXT ANALYSIS TARGETING POSITIONING BRANDING STRATEGYSEGMENTATION

Page 17: Nutcracker marketing

Blogging and Sharing childhood photos creates emotional connect and high engagement. Move to Pinterest and Twitter with users

IMC – Digital & Social Media• Facebook page of Livon India has a good number of 262,301 fans.

• Connect the website, FB page and YouTube channel by sharing content and conducting campaign across platforms

• Livon Ambassador Contest

• Call the bloggers to write interesting, crazy blogs on “I love my Hair” and include “Livon: 30 seconds Final Touch-up” in the article. Publish the blog on the Livon website.

• Share the blogs on Facebook to generate conversation on hair smoothening. The articles would also be judged by number of likes and conversation generated.

• Nostalgia Campaign

• Females love to share their childhood or old photos – High Engagement

• Contest where fans would be encouraged to share their old photos.

• The TVC, Experiential marketing campaign and guerrilla marketing campaigns should be shared.

• Launch Twitter and Pinterest pages – Engagement coverage

Select a childhood or old photo showing

your love for your hair

Add your quote and submit on

Facebook

“Share” it on your FB wall

Livon Ambassador Contest

CONTEXT ANALYSIS TARGETING POSITIONING BRANDING STRATEGYSEGMENTATION

Page 18: Nutcracker marketing

A hair grooming app which acts as companion. Creates Loyalty as serves their daily need of fashion

IMC – Mobile and Tablet Grooming App [Augmented Reality]

• TG spends 46 min on Apps per day We can bring an Android and IPhone App for the women which would give them:• Daily/ weekly tips on Hair Styling• Nostalgia Campaign: Share photos and

win• Trends via blog• Fashion news• Reviews

• Virtual Mirror app using Augmented Reality tech• User can see herself putting

different hairstyle and color- True Companion

Source: Nielson Report

25 Min

46 Min

Time spent on apps per day

FemaleMale

Livon Hair Companion App

CONTEXT ANALYSIS TARGETING POSITIONING BRANDING STRATEGYSEGMENTATION

Page 19: Nutcracker marketing

POS promotions ensures educating customer and increase trial. Awareness and Recall is increased too using witty Then-Now?

IMC – In-store (Point of sale) promotionEducation Hot Spot • It is the small portion of shelf space where brand can talk to

the consumers directly about • 30 seconds Final Touch-up • Benefit: Natural healthy hair • Daily use • How to apply • burst myths about harmful chemicals

• Engage Customers, generate WOMBrand Header at Hair care Shelf• Grabs the attention of the consumers especially in

supermarkets where large portfolio of product is available at one place

• Put 30 Sec Clock to symbolize the positioning• Make it engaging – “Why use Livon Silky Potion?”• Also builds the brand equity and increases brand recall

• Posters and Standees • Showing great hair in childhood but not so good now!• Use Livon – and get great hair in no time

Then Now? Use Livon!

Then – Now?

CONTEXT ANALYSIS TARGETING POSITIONING BRANDING STRATEGYSEGMENTATION

Page 20: Nutcracker marketing

It’s important that customer Experience the product to create credibility, engagement, and trial. Improves brand image.

IMC – Experiential Marketing• Engagement Campaign – making customer experiencing the product

• Conducted in shopping mall and public places

• Touch the lives of people in a more personal and interactive way.

• The whole activity would be covered by media and shared on social & digital media.

• Shopping Mall • Live Trial of Livon where customer would feel how their hair gets natural

healthy look in just 30 Seconds.• Click photo earlier (Then) and again after applying Livon (Now) and give it

customer. • Competition where entangled hair of mannequin needs to detangled using

Livon. Whoever does it first, wins.

Guerrilla Marketing

• Promotion in Lift• Closed Doors – Entangled Hair• Open Inside – Detangled Hair with message – Open with Livon

• Increases aspiration quotient as evokes intelligence of brand• Cost effective

CONTEXT ANALYSIS TARGETING POSITIONING BRANDING STRATEGYSEGMENTATION

Page 21: Nutcracker marketing

Other touch points apart from the conventional media have been identified to suit the target groups habits and practices

Exploring new Channels

Key Decision- Where to advertisement?

•Hairdressers are one of the key influencers while choosing the hair care products •Also the receptivity towards the hair care product is very high inside the beauty parlors •Thus Parlors can be used as touch point to sell as well as promote Livon serum

• Give T – shirts to the hairdressers on purchase of 50 bottles of Livon

• Print Livon message on the T- shirt/appron as shown here

• Give other hair related accessories free on further purchase like styling comb etc.

• Use this accessories as receptive touch point to promote Livon

• Write recommends Livon for Healthy Hair on accessories given with products for sell in parlour

USE Livon

for Health

y Looking Hair

• Use Mirror stickers and L-cards to convey the same message

• Eye level positioning of mirror stickers improves the visibility and thus makes message more impactful

• Hairdressers aspires to get recognition

• Certify salon as well as hairdresser who sell maximum Livon product

CONTEXT ANALYSIS TARGETING POSITIONING BRANDING STRATEGYSEGMENTATION

Page 22: Nutcracker marketing

Other Recommendations

Product Improvement

Idea - Introduce new fragrances in the Livon like Jasmin, Lily etc.

Insight – Many consumer don’t like the smell of Livon

Packaging Improvement Trial Improvement

Insight – Consumer think that their hair will become greasy looking at viscous liquid inside

Idea – Introduce Livon in opaque pink color bottle with tag new and improved

Insight – Consumer think there is no need to buy serum separately if they are using conditioners

Idea – Bundle Livon with parachute advanced in order to generate trial

Some other recommendations apart from the branding strategy have been given based on the consumer insights for the target group

CONTEXT ANALYSIS TARGETING POSITIONING BRANDING STRATEGYSEGMENTATION

Page 23: Nutcracker marketing

Sushant Salunke (1211295,[email protected] , 8147553650)