Furniture E-commerce Marketplace – The Four Major Challenges

It is now clear that India has two large online marketplaces, Amazon and Flipkart, with Paytm and Snapdeal losing steam in the last five years. All these platforms have largely grown in size with electronics being the major contributor and the primary reason for the consumer-pull (with discounts on top brands). Electronics, followed by other …

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Margin or Contribution Analysis

Margin Analysis, also referred as Contribution Analysis, is a tabular data to track the prices, variable costs and profit margins for all the members in a value chain (producer, distributor, retailer) for every relevant product within the firm's product line and across competitors. This data is mainly used to understand the below: Which among the …

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How the visibility budgets are used for price undercutting in FMCG?

If you speak to any Territory Sales In-charge or Manager (TSM) of a large FMCG company, they are going to mention one huge problem called price undercutting that affects their daily work. In an earlier post, I have written about how the wholesale trade leads to price undercutting. In this post, I am going to write about …

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Analysis of New Triers, Repeaters, and Lapsers of a Brand – ecommerce and fmcg

At any period of time, the consumer base of a brand is comprised of two sets of buyers:  New Triers, and Repeat Purchasers. The terms are self-explanatory. To put it simply, Repeat Purchasers are consumers (or households) who repeated the purchase of the brand, and New Triers are consumers (or households) who bought the brand …

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Entertainment in Television Advertisements

As I mentioned in earlier blog posts, to communicate something to a recipient one has to command the recipient’s attention and then be relevant to the recipient. Communication:  Command Attention (Clutter breaking) ->  Be Relevant This holds true even for communication among two individuals or two groups of people or for television commercials (TVCs). For the …

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CENTURYPLY’s latest Gorilla TVC

CENTURYPLY is undoubtedly one of the major furniture brands in India. Century Plyboard stayed away from TV advertising from the last four years, before it came back on TV with its new TVC on the World Anger Day - 28th Aug, 2012. In this blog post, we shall evaluate this TVC from Century Plyboard and understand if …

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CDM launches a new TVC before Friendship Day

For years, Cadbury Dairy Milk (CDM), India's favorite chocolate brand, has been trying to be the symbol of celebration and expression of every sweet moment in your lives. In continuation of its pursuit, Cadbury Dairy Milk celebrates the beginning of new friendships with its latest TVC, ‘nayi dosti ka shubh aarambh’. The TVC showcases the first magical moments …

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Television Advertisements – Clutter breakthrough and Brand Relevance

Before reading this article, just close your eyes zeroing your mind for a moment and recollect three television advertisements. Write down a few details of each of the television advertisements you could recollect. Of all the numerous advertisements I’ve watched, I could recollect only three advertisements: The old Nescafe advertisement The recent Flipkart’s advertisement of …

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Packaging gaining more importance

Although advertising can be a highly effective means of communication for those consumers who are exposed to it, it is becoming extremely difficult to reach with increased media fragmentation and costs of TVCs. Advertising on TV is a very costly affair and is done only when other vehicles cannot attain the objectives. Increase in Modern …

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How promotions help in range management issues?

Product Range Management A product range is the total product offering expressed in terms of width and depth. The width of a product range depends on the variety or number of types in a product category. The depth of a product range refers to the amount of choice offered in terms of product and brand …

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How is Intel promoting Core?

The heart of a computer is the processor and that is what Intel makes. Let us see how Intel is constantly reminding the consumers about what they build  and inspire them to engage with their technology. In a bid to engage consumers and promote its i5 processors, Intel is doing a range of promotions. Objective: To …

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Promotions: Maggi Club

Maggi Noodles was launched in 1983 as a tasty treat for children, with the brand communicating a strong fun element. The packaging was bright, innovative, and attractive. The brand appealed to mothers as it was very convenient, taking only 2 minutes to prepare, and the price is very affordable. Maggi was a big success. But, …

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Promotions: Mattel Hot Wheels Driving License

Hot Wheels die-cast metal cars were launched by Mattel in India in 1990. They were positioned as high speed international cars for boys 3-12 years old. By 1992, the brand has attained about 10% share with competition largely coming from smuggled goods of MatchBox and Corgi from Hongkong, Taiwan, and Singapore. Mattel faced two main …

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Google and P&G on ZMOT

According to Proctor & Gamble shoppers make up their mind about a product in three to seven seconds, just the time it takes to note a product on a store shelf. This time lapse is called (by P&G) “first moment of truth” and it’s considered the most important marketing opportunity for a brand. The term "First …

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Promotions: Horlicks Jug

During the early 90's, the brand Horlicks faced a problem in West bengal. Though the brand is well known and the consumers are buying it, the consumers are not buying the 1Kg pack and are repeatedly buying the 450gm size pack. Though the 450 gm size pack helped gain new users (trials), the repeat purchase …

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Promotions Management

Every promotion has an objective to increase sales, brand-building, building added values to the brand, increase purchase frequency, introducing a new sample product, etc. Based on the objective to be achieved, category/brand managers and key account managers develop and implement a promotional programme that gives the maximum return on investment and maintains the trade-off between …

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Push vs. Pull and how promotions may take your market share down?

Based on a set of factors mentioned below (not comprehensive) the managers decide to go for a PUSH or a PULL strategy. In practice, generally both PUSH and PULL strategies are used in combination to achieve the objective. 1. Product category 2. Consumer Behaviour in the category and the interaction 3. Competition Promotions and Marketing …

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The dilemma of Profits or Share

Consider a firm that wishes to increase current year profits p, as well as market share m.  As shown in the figure, for some values of m profits increase, and then it starts to decrease beyond a point.  Beyond a point increased market share comes only with reduced current year profits because of increase expenditures …

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Touch point strategy

Segmenting consumers and understanding their behavior helps us understand the different customer interactions and touch points available for each of these consumer segments. Understanding the brand personality and the moods the brand can leverage will provide the advantage to communicate the values and be present at relevant touch points. With the media clutter the consumers …

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