One of my PhD students is working on her thesis titled “Marketing Strategies for Tourism Industry;’’ the University practices progress review on research every year. One of the panellists asked her to explain what her contribution to the research is, and what are the 4 Ps of tourism?  My student has done a wonderful job; she tried explaining the 4 Ps, however, the panellist was not in a mood to listen to her explanation. How do we explain 4 Ps of tourism? Can we call tourism a tangible or an intangible product? The most accepted definition is provided by the World Tourism Organization (WTO), “tourism comprises the activities of persons travelling to end staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes”.

The natural curiosity of human to know different places, its culture, and desire of travel is inborn. People keep travelling for number of reasons. The travelling activities will never stop; therefore tourism activities will increase in the future more and more, especially with the development of transportations system and the information technology.

Nevertheless, tourism is a very multifaceted industry which involves numerous stakeholders right from government of a nation, hospitality stake holders, and the nature (environmental factors) themselves – each contributing to either its growth or downfall.

Lets understand the 4 Ps of tourism:

Product: First and foremost, tourism as a product differs from other products due to its large canvas. It covers a range of elements such as accommodation, food and beverages, transportation, scenic/heritage/historical/geographical/spiritual attractions, recreation and of course the customer’s own outlook. Not everything is tangible in it; it is a mix of tangible and intangible experiences. And a customer is going to like a “product”, which is a “destination” for a tourist. If the elements listed above are up to the tourist’s satisfaction, the product is purchasable.

In a marketing mix a product is any offering which satisfies customer’s requirement. Since tourism business is all about experience of TOURIST – this needs a different handling all together. It has to satisfy the tourist’s innate experiences.

Each tourist has his/her enigma; there are lot of tacit expectations of tourists. I personally think tourism as a product is complex in nature. It’s packaging matters.

Price: Price in case of tourism is the amount of money that customer pays for the package offer. Whether the package is highly priced, properly priced or is low priced is decided by the experience of the tourist. The pricing should be based on basis of offering made; the accommodation standard, food standard, transportation standard, recreation and the aspirations to be met with. Some destinations are expensively priced while some are modestly priced.

Tourism products are rarely identical. This is because locations differ and also because of the people and the components that make up the experience provided to a traveler.  It can be incredibly diverse and pricing strategies can evolve as a tourism destination develops.  The pricing varies according to the package: uniqueness of the destination, what value added services are provided inclusive of the experience, which segment is being served (middle income/ high income/ low income) the operating costs (fixed and variable) and break even of the service provider.

For most tourism businesses setting prices will be market based. It is driven by what do competitors with similar products and services charge within a given market. Let me clarify here, preferably being price competitive is not price driven, its product driven. It also depends on the seasonality element. In sense, tourism business is seasonal in nature.

Place: In case of tourism industry, distribution is a tricky aspect. In terms of definition, distribution is concerned with making the product available to the customer. It includes various activities undertaken to make the product accessible and available to target customers. Tourism being a service product, and here the customers need to be transported to various destinations (point of sale), its channels are tourist operators, agents, wholesalers, Tourist Company’s website, blogs etc. For the distribution channels in tourism understanding the distribution systems, recommended rates of commission, and the roles of various booking agents’ matters.

Retailers provide customers with an accessible place; either online or as a shop front by booking travel products.  They sell products to customers. Wholesalers are businesses that will sell product through established retail distribution channels both at shop front and online on behalf of the service provider.  They also sell individual product elements and link them to form packages. The role of the intermediary has been an important element at all stages experienced by the tourism sector. Technology has played a pivotal role in growth of travel industry.

Promotion:  Refers to informing the customers about existence of a product. The promotional activity consists of educating, persuading, reminding the customers about the product. A variety of media vehicles are available and being used by the tourism industry.

Tourism promotion uses a good promotional mix such as personal selling, advertisements in print media and electronic media, television etc. People prefer less-travelled destinations; these products require accommodations, transportations and infrastructural facilities of an international standard. Distinctive advertising strategies help to promote nation as a brand, which develops over so many choices in our world. Painting a tourism product in a positive light always helps in attracting potential consumers, and consequently the product consumed is the very essence of the advertising world.

The tourism business is highly hyper competitive in nature. The tourism destinations are faced with a rapidly changing surrounding, nature and increasing demands from travelers. It requires adaptable and workable marketing strategies. The world is well connected today – thanks to Internet. Nationally, tourism ministries of governments are tremendously responsible for its maintenance and development both. And, tourists are complex in nature; they go for overall holistic experience. In order to support the development of a destination that provides a seamless experience are the ones that click.

To sum it up – sky is the limit for growth of tourism sector. The 4 Ps can be developed in manifold and can be mixed and merged beyond imagination.

From past decade the sports industry continues to see an inflow of money from new sources because of shifting power dynamics in far-flung villages, towns and cities. Also, because of widespread use of emerging technologies and a greater focus on broader societal issues. In India, sports industry is becoming robust which explores newer trends and new opportunities and challenges for sports organizations, leagues, owners, teams, players, and fans. The Narendra Modi government is giving additional push to sports.

Globally the sports industry is massive which includes fitness, health, yoga and pure entertainment. Sports industry is getting more visibility because of digital media. It has a massive audience which is much diversified in terms of age, gender, geography, and society. The sports industry is a hyper-dynamic sector which is constantly changing and all of this is reflected in the marketing strategies used by this sector. 

Marketing strategies involve the four Ps; the product can be a good or service, price includes what the consumer pays, place includes the locations where a product is marketed and distributed, and promotion includes advertising. The concept of the four Ps is age-old; it has been around since the 1950s. In mid-eighties, the four Ps were extended by another three Ps of marketing mix which includes the people, the processes and the physical evidences. These three components are also of great essence in marketing.

The term Marketing Mix was coined by Neil Borden who first started using the phrase in 1949. He said that the marketing manager blends the ingredients for an attractive offer of marketing mix. It was Jerome McCarthy, who in 1960 to suggest the four Ps of marketing. According to McCarthy the marketers fundamentally have the four variables which they use while crafting a marketing strategy and while preparing a marketing plan.

This article will discuss the four Ps of sports marketing. Sports market is growing globally from $354.96 billion in 2021 to $501.43 billion in 2022 at a compound annual growth rate of 41.3% CAGR (compounded annual growth rate). Overall employment of all marketing, advertising and promotions managers, including sports marketers, is projected to grow 6 per cent from 2019 to 2029, faster than the average for all occupations. Sports marketers will be needed to plan, direct, and coordinate advertising and promotional campaigns.

The marketing mix is very important to sports organizations. Each sports organization is going to utilize a different combination of these four P’s. Each one will have a different product, a different price, a different place, and different promotions to attract any given target segment irrelevant of whether the organization is domestic or international in nature. An organization can calibrate quality of product, extension of product, regulation, powering or increasing price. A well prepared marketing mix enhances the success of the product with benefits such as creating synergy which helps to create the right pitch for promotion. It enhances brand loyalty. It eases the decision making of brand managers to position the product rightly in customer’s mind.

To explain the four P’s of Sports Industry I will be giving example of Nike brand. 

Product

The product is the heart of the marketing mix. All marketing activities begin with it. The product is not a physical entity alone; it captures the whole tangible and intangible aspects such as functional use, appearance, design, features, brand name, logo, quality packaging, ingredients etc.

Here, it is essential to understand the term product mix concerning marketing. The product mix is the whole range of products a company offers to its customers. For instance Nike majorly produces sports-related items and equipment. Nike focuses on producing a wide range of products and makes sure to maintain the mark of quality. The company designs different products for each kind of sport which makes its products comfortable for athletes including sports apparel. Nike has a wide range of sports equipment and accessories like bags, backpacks, balls, headbands and caps, and many more. The company has also teamed up with Apple for Nike+ products to track runner’s performance through running watches.

Nike produces different shoes for different purposes like running, golf, football, cricket, skateboards, tennis, cycling, and other sports too. They also sell casual footwear for non-athletes in vibrant colours which attract the youths. They manufacture different styles of sneakers according to men, women, and kids. Most importantly Nike’s focus is to constantly keep innovating design and develop products to improve athletic performance. Its overriding desire is to design products with true performance while using mix of innovation and technology. Nike makes sure that its consumers benefit and perform better.

Price

It’s the cost consumers pay for a product. It is the only P which generates revenue. Marketers must fix the price which suits the product’s real and supposed value. Marketers must consider supply costs, seasonal discounts, and competitors’ prices. In some cases, business executives may raise the price to give the product the appearance of being a luxury. Pricing decisions must be thoughtful process, as it is a double-edged sword. If a product is highly priced, it may project high quality and make the product’s positioning in limited and standard stores. So, the marketer must know the art of exercising this dangerous sword of pricing.

Nike uses value-based pricing and premium-based pricing strategy for their products. Nike does comparative study of its competitor’s product pricing while the company considers the current market price while setting the prices of products. Before setting up the prices, they measure what overall customers are willing to pay for a product. This value-based price strategy helps Nike to increase its profit over the time.

Premium-based pricing means pricing of premium products; Nike sets premium prices for its high-quality products. From time to time Nike has offered discounts on its products like “Easter sales” “Diwali Sale” on its online website and its stores, which helps them to attract new customers and retain the existing ones. They are also given the option to sign in and be the first ones to get any new arrivals.

The pricing decisions are based on policies and strategies. Also, the pricing decisions are based on allowances, discounts, rebates, credit policy etc. The pricing strategy of an organization must align with the organization’s mission, vision, goals etc.

Place/Distribution

Place in marketing mix refers to the market geographically located all over in a nation and in larger sense the globe. Marketing strategy depends on the market location. Where a company sells its products is important because the location must have the target customers.  

Distribution decisions include elements such as channels of distribution, cost of warehousing, product handling, transportation, inventory control, order processing, reporting and billing.

Nike has 1000 plus shops all over the world and its offices are located in 45 countries outside the US. Most of the Nike products are sold in retail shops as many customers prefer to physically select the products by trying on sportswear. Retail stores are easily available in every city in multiple nations.

The company has its outlet named Niketown. These are the big hyper stores occupying 4or more floors with premium experience due to a variety of services. Niketown stores are fancy stores where new and emerging products are sold. Nike has recently reopened its flagship Niketown store on Oxford Circus Street in London following an extensive redevelopment. Helvar lighting (intelligent lighting) control has been used across the reportedly largest Nike store in the world just to deliver a creative and inspiring shopping environment. The Niketowns have a customization booth to offer services to individual customers as per their choice. It consists of professional zone where you can take advice for which product suits bone structure and body size of a customer. The customer’s shopping experience is made exclusive.

Nike products are also sold through their Online Nike store. They also sell through other online stores like Amazon, Flipkart, and Myntra. Nike spends handsomely on strengthening their distribution channels.

Promotion

In marketing, promotion refers to any type of marketing communication used to inform target audiences of the relative merits of a product, service, brand or issue, most of the time persuasive in nature. The other word for promotion is advertising. Advertising aims to serve two objectives. One is informing the potential customers about the product and second it creates a desire in them to buy the product. The promotion mix thus includes the various means that an organization uses to communicate with the target audience. An effective promotion ensures good sales and a marketer must strive to create a conducive environment.

The promotional mix includes advertising, personal selling, public relations, direct marketing, social media, print media, outdoor media etc. 

Nike’s main source of promotion is sponsoring sports events. The company does advertisements involving high-profile celebrities and athletes of different countries.  Some celebrities that promote Nike’s products are Serena Williams, Christiano Ronaldo, Mo Farah, Kunal Rajput, Rafael Nadal, and LeBron James. It also Sponsors the sports teams like cricket, NFL, FIFA World Cup, Tour de France Cycling, Rugby World Cup, and NBA. Nike’s new ad brilliantly showcases the unstoppable spirit of women in India. The video features top Indian sportswomen along with Bollywood beauty Deepika Padukone.

Nike does direct marketing by personal communication with organizations such as universities, schools, colleges, and local sports teams. They also give time to time discounts and great offers to their loyal customers and to woo new ones they use promotional tactics. They give financial support to the NGOs to make public relations strong and able to promote their products through it. Nike’s target audience is fitness-centric, elite class, and sports enthusiastic people especially youngsters. Nike also promotes its products through social media by connecting with millions of people and interacting with them through Instagram, Twitter, Facebook, and YouTube. Nike’s “Just Do It” campaign launched in 1988 motivated millions of people to do their job efficiently. Till date, this slogan is a trademark of Nike. The company’s Latest campaign hashtag #YouCantStopUs tells us that every sports field is equal which has gone viral on social media. Nike does such inspiring campaigns of different themes from time to time and gains trust of their customers.

Sports event sponsorship

Lot of sports companies sponsor sports events to add value to the brand. In almost all sports events there is intense competition among companies and brands. Often there is little to choose from in terms of quality, content or price. In order to make a brand stand out from the crowd a sponsor choses sport to create a unique position in the mind of the consumer. At the highest levels, sport involves gold medals, world records and global awareness. Through sponsorship sports companies gain a big mileage. Companies use sports sponsorship for a variety of reasons, and to attract sponsorship it is important to understand which objective a company is seeking.

Sports companies seek to get media coverage. Sporting events create opportunities for exciting newspaper photographs and television images showing sponsor logos on shirts or banners. Such exposure creates brand awareness making its logo stand out from competitors. The sponsor gets more benefit through activities that are enjoyable and memorable and provides opportunity to build customer mindshare. The sponsorship provides an opportunity to communicate with the customer in the setting where he is enjoying a quality time, leisure time and experience.

Big brands such as Pepsi, Puma, Adidas, Nike, Red Bull, Coca Cola, and Reebok are famous for sponsoring events. They have contributed a lot of money and effort to sponsor campaigns for teams around the world.

Case study is a form of qualitative and also quantitative research that focuses on providing a detailed account of one or more cases. Eg: how important is sales training in e-commerce: how different e-commerce companies used sales training to the best of their advantage. And, the best part is that the case study is the most flexible of all research designs which allows the researcher to retain the holistic characteristics of real-life events while simultaneously allowing him/her to investigate the empirical events. In general, a case study is an empirical inquiry which investigates a contemporary phenomenon within its real-life context. Empirical research is based on observations made by the researcher – his/her actual experience rather than any theory or belief. Many times, the theory and observations can have contrasting facts; this is where case study type of research scores higher rank, it allows making the boundaries between phenomenon and context clearly evident and in it multiple sources of evidence are used.

Case studies are one of many ways of doing social science and humanities research: it can be carried out with experimentation, observation, surveys and archival information. Each form of data collection is suited to a certain type of research problem; degree of experimentation has control over events and historical/contemporary perspective and focus. By design researchers chose case studies usually when their topic is their principal subject and they chose selected examples of a social entity within its normal context. At the simplest level, the case study provides descriptive accounts of one or more cases; it depends on the researcher’s perspective how many cases he should handle in his research. It gives the researcher a chance to experiment intellectually more and more insights of one or more selected social factors within a real-life context.

Before deciding to use case study as your research type these are few things you need to do: first decide whether case studies can be useful for your specific investigation. There are three factors that determine the best research methodology: 1. the types of questions to be answered 2. Decide to what extent you have control over behavioural events of the respondents and your chosen sample 3. Understand the degree of focus on present-day as opposed to historical events. You will have to tackle these issues in framing your research questions which are most significant in determining the appropriate approach. Who, what when and where questions can be examined through documents, archival analysis, surveys and interviews. Therefore, I feel that case studies are one approach that supports deeper and more detailed investigation of the type that is normally necessary to answer how, when and why questions.

Case study research is also good for present-day events when the appropriate behaviour cannot be manipulated. Typically case study research uses a variety of evidence from different sources, such as documents, artefacts, interviews, journals, data banks and observation, and this goes beyond the range of sources of evidence that might be available in historical study. In summary then, case study research is useful when: A how or why question is being asked about a contemporary set of events over which the investigator has little or no control.

In contrast to surveys, typically the numbers of units studied in a case study are lesser in number, but the extent of details available for each case can be greater. As compared with an experiment, the case study researcher has much less control over the variables, than if an experiment were used to investigate a situation. In a survey data may be collected from a number of organisations in order to generalise to all other organisations of the same type. In contrast in a comparative case study across a number of different organisations, the objective is to compare or reproduce the organisations studied with each other in a systematic way, in the investigation.

Lesser usage of statistical examination:

While analyzing results for a case study, researcher need not use complex statistical tools because the analysis becomes more opinion based than statistical method based. The usual idea is to try and collate data into a manageable form and construct a narrative around it.

In subjects like social sciences and humanities conservative use of statistics reduces the significance and application of the topic. I have observed that often over usage of statistical tools destroy results which are often reported in an unnecessarily obscure manner. Secondly, in my opinion, the null hypothesis testing concept is extremely flawed. And, thirdly, there are several issues, independent of the particular statistical concepts employed, which limit the value of any statistical approach. For instance, difficulties of generalizing to different situations, and the weakness of some research in terms of the size of the effects found. I have seen how some Universities insist often over usage of statistics which kills the essence and core of a topic.

Therefore, case study as a research plan often emerges as one of the best options for research students and mature researchers who are seeking to undertake a modest scale of research project based on their workplace or the comparison of a limited number of organisations. The most challenging aspect of the application of case study research in this background is to lift the assessment from a descriptive account that can claim to be a worthwhile; it contributes modest addition to the research.

Some facts of case study:

• Case study is an empirical inquiry that Investigates a contemporary phenomena within its real life context.
• It is helpful when the boundaries between phenomenon and context are not clearly evident. This statement emphasises that an important strength of case studies is the ability to undertake an investigation into a phenomenon in its context; it is not necessary to replicate the phenomenon in a laboratory or experimental setting in order to better understand the phenomena.
• Thus case studies are a valuable way of looking at the world around us. On the other hand, it is important not to confuse case studies with ethnographic and other strictly qualitative research paradigms. Case study research can be based on any mix of quantitative and qualitative approaches. Typically, it uses multiple data sources including two or more of direct detailed observations, interviews, and documents. In addition, case studies can involve single or multiple cases as discussed in the next section on research design.

• Case studies are in-depth investigations of a single person, group, event or community. Typically, data is gathered from a variety of sources and by using several different methods.

Do you know that the case study research method was originated in clinical medicine (the case history, i.e. the patient’s personal history). Case studies are widely used in psychology and amongst the best known were the ones carried out by Sigmund Freud. He conducted very detailed investigations into the private lives of his patients in an attempt to both understand and help them overcome their illnesses.

In Business management studies case studies like Malden Mills, Start bucks, Tylenol’s 1982 scandal, David VS Goliath, Tesco’s international expansion and Enron are some of the famous case studies which are so in-depth that while reading them you don’t need to use other referrals. They are well described, well analysed, with apt data and conclusions and observations.

]]> https://drvidyahattangadi.com/case-study-is-one-of-vital-type-of-research/feed/ 0 https://drvidyahattangadi.com/is-consumer-protection-act-making-consumer-a-king/ https://drvidyahattangadi.com/is-consumer-protection-act-making-consumer-a-king/#respond Mon, 17 Aug 2015 07:07:54 +0000 http://drvidyahattangadi.com/?p=2654 Is Consumer Protection Act making consumer a king?

Consumerism promotes both social as well as economic conditions which encourages the buying of goods and services in ever-greater amounts. And, consumerism implies better economy of a nation. The term refers to the consumer protection which seeks to defend and inform consumers to be informed of practices as honest advertising and packaging, product guarantees, fair price, and enhanced standards of safety. In this regard it is a movement or an array of policies having a mission of regulating the products, methods, services, and standards of sellers, manufacturers and advertisers in the buyers’ interests. As per economics definition, consumerism means economic policies of laying importance on consumption. In a sense, it is believed that the consumers are free to make choice and should dictate the society’s economic structure. The term “consumerism” had been first used in the year 1915 and referred to “advocacy of the rights and interests of consumers” defined in Oxford English Dictionary. Consumer protection plays a crucial role in building a fairer, safer world.

In the developing countries, consumers are yet to grow to be mature in their decision making. Consumers need to think seriously regarding their requirements. Most of the products are purchased by the consumers based on herd mentality; if neighbors buy something, or friends buy then even I want to buy. Also, there are many products in the market that signifies the status symbol like food processor, microwave, home theatre, dining tables etc and the consumers are ready to purchase these products even without having much demand. Some life-events influence consumer behavior; these life events which otherwise can be rationally handled; need, arousal, information, search need to be evaluated while looking at alternatives which does not happen.

In India there are strong and clear laws to defend consumer rights. Out of the various laws that have been enforced to protect the consumer rights in India, the most important is the Consumer Protection Act, 1986. According to this law, everybody, including individuals, a firm, a Hindu undivided family and a company, have the right to exercise their consumer rights for the purchase of goods and services made by them. It is noteworthy that, as consumer, one knows the basic rights as well as about the courts and procedures that follow with the infringement of one’s rights.

In general, the consumer rights in India are listed below:

• The right to be protected from all kind of hazardous goods and services: Goods or services that can be proved hazardous to the safety or life of a person offered for sale, unknowingly or knowingly, that cause injury to health, safety or life. According to the Consumer Protection Act 1986, the consumer right is referred to as ‘right to be protected against marketing of goods and services which are hazardous to life and property’. It is applicable to specific areas like healthcare, pharmaceuticals and food processing; this right is spread across the domain having a serious effect on the health of the consumers or their well being viz. Automobiles, Housing, Domestic Appliances, and Travel etc. When there is violation of the right then there occur medical malpractice lawsuits in the country. It is estimated every year that thousands or millions of citizens of India are killed or seriously injured by immoral practices by doctors, hospitals, pharmacies and the automobile industry. Still the government of India, known for its callousness, does not succeed in acknowledging this fact or making a feeble effort for maintaining statistics of the mishaps
• The right to be fully informed about the performance and quality of all goods and services: The right to information is defined as ‘the right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, as the case may be so as to protect the consumer against unfair trade practices’ in the Consumer Protection Act of 1986. In the market place of India, consumers get information by two ways namely advertising and word of mouth however these sources are considered to be unreliable but still this word of mouth is quite common here. Because of this, the Indian consumers hardly have precise and complete information for assessing the true value, safety, suitability, reliability of any product. Usually the hidden costs can be found, lack of suitability, quality problems and safety hazards only after the purchase of the product.
• The right to free choice of goods and services.
• The right to be heard in all decision-making processes related to consumer interests.
• The right to seek redressal, whenever consumer rights have been infringed.
• The right to complete consumer education.

The Consumer Protection Act, 1986 and several other laws like the Weights, Standards & Measures Act need be formulated further to make sure that there is fair competition in the market and free flow of correct information from goods and services providers to the ones who consume them. In fact, the degree of consumer protection in any country is regarded as the rightly gauged which accelerates progress of the country. There is high level of sophistication gained by the goods and services providers in their marketing and selling practices and different types of promotional tasks viz. advertising resulted in an increasing requirement for more consumer awareness and protection. The government of India has realized the condition of Indian consumers therefore the Ministry of Consumer Affairs, Food and Public Distribution has incorporated the Department of Consumer Affairs as the nodal organization to protect the consumer rights, redress the consumer grievances and promote the standards governing goods and services provided in India.

If there is infringement of rights of consumer then a complaint can be made under the following circumstances and reported to the close by designated consumer court:

• The goods or services purchased by a person or agreed to be purchased by a person has one or more defects or deficiencies in any respect.
• A trader or a service provider resorts to unfair or restrictive practices of trade.
• A trader or a service provider if charges a price more than the price displayed on the goods or the price that was agreed upon between the parties or the price that was stipulated under any law that exist.

Consumers International (CI), the global federation of consumer organisations, set out to consider the state of consumer protection around the world through a global survey of its member organisations. Seventy consumer groups from 58 countries participated in this research, which covers a wide range of consumer protection issues. The results provide an discerning global snapshot of consumer protection across a wide spectrum of countries, and an invaluable contribution to CI’s work on consumer justice and protection. The results of this survey also come at an important time in the ongoing international development of consumer protection. The key principles of consumer safety were initially being protected at an international level in the UN Guidelines for Consumer Protection (UNGCP). Since being established in 1985, the UNGCP now forms the basis of consumer protection legislation in many countries around the world. CI and its member organisations are contributing to this process to ensure that the guidelines are revised to reflect the reality faced by consumers in the 21st Century.

Conclusion: While the business world is experiencing the how consumerism is changing the way the world shops because of the consumer’s ability to get information about whatever he wants, whenever he wants and this power has given the consumer an unprecedented strength. In markets with highly transparent prices, they are kings. And we see highly transparent markets only in developed countries. The implications for business are colossal; threatening for some and welcoming for others. For instance, the huge increase in choice makes certain brands more valuable, while some lose their value. And as old business divisions crumble, a strong brand in one sector can kill other brand’s potential. Look at how Apple has used its iPod to take away business for portable music players from Sony; Starbucks is aiming to become a big noise in the music business by installing CD-burners in its cafés; and Dell is moving from computers into consumer electronics.

A Brand Ambassador is someone who, at the most elementary level, symbolizes a brand in a positive way; he/she embodies a brand. The brand ambassador communicates the message of a company to consumers or people who would be interested in buying the company’s brand after learning about it. Thus, BA puts a human face on the multi-million dollar corporations because consumers associate with them more effectively.

The affinity consumers have for certain celebrities can greatly influence their purchase decisions. People perhaps feel that, “If the product is good enough for her, its good enough for me.” This philosophy is often the force behind advertisements for makeup, skin creams, lingerie, banks, eatables, beverages and attire. The brand ambassadors infuse confidence in the consumers to use a product/service. Essentially, the celebrity’s testimonial adds instant reliability to a small or big brand.

That’s why brand ambassador is a part of the company’s marketing and sales team. Celebrities endorse for products in lieu of heavy money. Therefore, they automatically become responsible if the brand turns out to be spurious/bogus/contaminated. It’s simple, before endorsing a product it’s their responsibility to check the credibility of a product/service. In the recent Maggi Noodle’s fiasco, the Uttar Pradesh Food and Drug Administration’s decision to recall packets of Maggi Noodles for reportedly having monosodium glutamate and lead more than permissible limits, film star Madhuri Dixit, who endorsesMaggi’s brand of ‘nutritious’ oats noodles is in trouble. The Haridwar FDA has issued her a notice  seeking an explanation as to how the noodles are nutritious, and on what the basis Nestlé is making such a claim. If she fails to respond within a fortnight, a case could be filed against her, according to officials of the FDA.

Can ambassadors simply shrug off their responsibilities when the brands endorsed by them turn out unauthentic?  Misrepresentation of products, especially in the food sector, is a serious issue, and not as silly  as many would like to believe. In February 2014, last year, the Central Consumer Protection Council, under the leadership of former Union Food Minister KV Thomas, decided  unanimously to propose laws to hold celebrities endorsing products also liable in cases of misleading advertisements. The rationale behind this decision of the CPCC was that celebrities had considerable influence over consumer choice, and that there must be some form of liability for the endorsements being made.

In US, Kellogg’s popular Rice Krispies cereal had a crisis in 2010 when it was accused of misleading consumers about its immunity boosting properties. The Federal Trade Commission ordered Kellogg to halt all advertising that claimed that the cereal improved a child’s immunity with “25 percent Daily Value of Antioxidants and Nutrients — Vitamins A, B, C and E stating the claims were “dubious.” Ironically, just a year prior, the company settled with the FTC over charges that its Frosted Mini-wheats cereal didn’t live up to its ads. The campaign claimed that the cereal improved kids’ attentiveness by nearly 20%, and was shot down when the FTC found out that the clinical studies showed that only 1-in-9 kids had that kind of improvement and half the kids weren’t affected at all. Now, we just cannot imagine this kind of strictness and vigil in the Indian administration. Our laws are indistinct and lack spirit to take up firm steps.

There is a notion that brand ambassadors can’t generally be tamed. The ad agencies do speak in favor of their models. When the going is good, everyone wants to be party to the success, but, when the going gets bad you can test the actuality of people. The celebrities behave larger than life. They should be held guilty for false advertisements because they exploit their fan following and their popularity. The fans revere them so much; they follow their personal lives and their styles to no end. Tiger Woods was a brand ambassador for Gatorade, Gillette, Accenture, AT&T, Gold Digest and Tag Heuer. After his plentiful extramarital affairs were revealed, the majority of these brands discontinued him as they found it difficult to continue him as their brand ambassador.

In India in 2012, actress Genelia D’Souza was summoned by court for allegedly making false promises through ads and brochures for a real estate company in Hyderabad. Andhra Pradesh High Court demanded her explanation as brand ambassador for a project called ‘Anjaniputra’ located close to Hyderabad Deccan when the project seems to have gone bust. This is the latest in how society and the laws in India are dealing with the extremely doubtful advertisements. It is a matter of time before similar questions are raised by other consumers who are swayed into investing in products or services, by fraudulent advertisements endorsed by celebrities who are supposed to also be role models.

The Home Trade scam of 2002 had the celebrity endorsement  of three big celebrities, Sachin Tendulkar, Hrithik Roshan and Shah Rukh Khan. Having created not a single product, the company made away with thousands of crore rupees of investor money, and celebrity-endorsed brand building  was a crucial part of their operation. Activists have also been speaking out against ads for sauna-belts, medicines, Hanuman-chalisa yantra and gem-stones on TV screens.

How can celebrities vouch for the authenticity and effectiveness of that product with great confidence without checking them? Like with politicians, an advertisement and the celebrities involved in it can simply be voted out. They can be thrown out in disgrace. This message is clear; the company and ad agencies cannot work on the premise that the consumers are fools. They better learn to respect their constituency, i.e. the consumers.

Due diligence should be exercised before making of an ad. All stakeholders must share their responsibilities. The three stake-holders in ad making are advertiser, advertising agencies and the media. Let’s understand this straight: in advertising, there’s a big difference between pushing the truth and making false claims. Most of us have some or the other time in our life been victims of false advertising. Are we going to take it lying low or question the companies to change their marketing policies? Can we allow the companies to continue to prioritize profits over the consumers?

In progressive countries like America and Europe companies need to face harsh penalties. Companies are made to pay up the consumers for cheating them.
Dannon’s popular Activia brand yogurt lured consumers into paying more for its purported nutritional benefits when it was actually pretty much the same as every other kind of yogurt.

In Canada and America law suits were filed against Dannon for falsely touting the “clinically” and “scientifically” proven nutritional benefits of the product.  In spite of the company got a famous spokesperson, Jamie Lee Curtis, for the supposed digestion-regulator, some customers didn’t buy it. Do you know that a class action settlement forced Dannon to pay up to $45 million in damages to the consumers? The company also had to limit its health claims on its products strictly to factual ones.

In another case, hundreds of car owners were extremely disappointed to find out that Hyundai and Kia Motors overstated the horsepower in some of their vehicles. In 2001, the Korean Ministry of Construction and Transportation uncovered the parody, which for some models was as much as 9.6 percent more horsepower than the cars actually had. A class action lawsuit in southern California claimed the companies were able to sell more cars and charged more per vehicle because of the false claims. In the end, the auto powerhouses had to pay customers; the settlement estimated to be between $75 million and $125 million.

In India, to protect rights of consumers the process of filing complaint and finding resolution needs a drastic improvement. Strict guidelines should be made and law suits must be resolved in minimum a week’s time. Then, we might find respite from getting cheated recurrently by companies, their advertisements and savvy brand ambassadors.

In 1980 Michael Porter described three generic strategies which a company of any size (small, medium or big) can choose to pursue its competitive advantage. The three generic strategies are lower cost, differentiated or focus. A company can choose one of two types of competitive advantage; either lower costs than its competitors or differentiating itself along dimensions valued by customers to command a higher price. A company also chooses one of two types of scope, either focus by offering its products to selected segments of the market or mass market, offering its product across many market segments. The generic strategy reflects the organization’s strategic power.

Competitive advantage is a distinguishing trait of the business which may include access to natural resources,  firm’s location, supple supply chain, marketing channels, highly skilled personnel, geographic location, high entry barriers, etc. It can also be technological superiority, brand power which can provide competitive advantage, whether as a part of the product itself, as an advantage to the making of the product, or as a competitive aid in the business process.

Porter suggested that a company must choose one of the three strategies at a time; if it makes a wrong decision it may risk losing its precious resources. He says that to accomplish competitive advantage the firm must have the abilities to cope with the five forces in the market; competition between existing players, bargaining power of buyers, bargaining power of suppliers, threat of new entrants and threat of substitution.

Cost Leadership Strategy:

Wal-Mart Stores Inc. has been successful using cost leadership strategy very well for over years. The store has been attracting buyers with low prices; the low prices are offered every day to attract customers. The products are offered at a cheaper rate than competitors consistently, not occasionally. Wal-Mart is able to carry on the gigantic business due to its large scale and efficient supply chain management. They source products from cheap domestic suppliers and from low-wage foreign markets. This allows the company to sell their items at low prices and they earn profits through thin margins gained from high volumes of business.

In cost leadership strategy companies charge a lower price but their volumes are larger. Therefore, volume of business allows a company to maintain its profits and expand its market share. Some consumers shop only at stores that offer the lowest price, which means industries like groceries, fast foods and garments often have price wars. The winner in a price war enjoys protection from rivals because competitors lose out on their profits when they attempt to offer the lowest price. The cost leadership strategy also makes it difficult for new companies to enter the market because of thin profit margins.

Another brilliant example of cost leadership is the Swedish furniture retailer Ikea. This company offers furniture at amazing low price. It’s the best example of innovativeness. Ikea is able to keep its prices low because it sources its products from low-wage countries. It saves on labour cost and it does not assemble or deliver furniture; customers must collect the furniture from  the warehouse and assemble at home themselves. Thought from convenience point of view this is less suitable, customers still buy it from Ikea because of the lowest price tags.

Product Differentiation strategy:

Porter says that an industry has multiple segments that can be targeted by a firm. The breadth of its targeting refers to the aggressive capacity of the business. If a company targets customers in most or all segments based on characteristic or trait (size, shape, uniqueness, service etc) other than price it is opting for product differentiation strategy.

Etsy is an online artisan store and shopping gallery which has used differentiation strategy wisely. Etsy offers its users a platform to showcase their handmade wares and sell them to customers around the world. Hence this store is called as a crafter’s paradise. Etsy has carved a niche for itself through sales of craft supplies as well as homemade items. Through Etsy, the community of crafters has found a home on the internet and the world has been opened to the amateur artisan/crafter those who wish to sell their products. The Etsy business model brings together the artists and the business savvy of investors who are keen to support the ideas and talent of craftsmen. This business model has worked wonders for Etsy.

Differentiation is a marketing term used to describe the process of developing promotional messages that distinguish products from those offered by competitors. The differentiation plank is created in the minds of target customers. Effective differentiation is critical to building a strong business model. Samsung has adopted differentiation strategy by providing its customers large numbers of service centers network, online technical support, entertaining online complaints, live chats with customers and phone support. Each year Samsung invests minimum 9% of its sales revenue in R&D activity. It believes in innovative concepts and innovative marketing strategies. It has mapped out a plan of reaching $ 400 billion revenue and becoming the leader globally in appliances market by 2020.

Differentiation strategy involves making the products or services diverse yet attractive than competitors. How a company does this depends on the nature of the industry. Differentiation involves product features, functionality, durability, support, service quality, time and also brand image which the customers value. To make a success of a Differentiation strategy, organizations need good research and development, innovation and the ability to deliver high-quality product or service. It also requires effective sales and marketing team, so that the market understands the benefits offered by the differentiated offerings.

Large organizations pursuing differentiation strategy need to stay supple with their new product development processes. Otherwise, they risk attack on several fronts by competitors pursuing differentiation strategies in different market segments.

The Customer Focus Strategy (Niche marketing):

Companies that use Focus strategies concentrate on particular niche markets and, by understanding the dynamics of that market and the unique needs of customers within it, by developing uniquely low-cost or well-specified products for the market. By doing so, the company also enjoys deep economies of scale. The company enjoys effective insights because of the smaller size of market. Thus, automatically the company enjoys market power within the niche. The only challenge in using customer focus strategy or niche market strategy is choosing markets where the customers are lesser prices sensitive.

Because of choosing the right markets and serving customers uniquely well, companies enjoy strong brand loyalty amongst their customers. This makes their particular market segment less attractive to competitors.

In the focus strategy, it is still essential to decide whether a company would like to pursue Cost Leadership or Product Differentiation. Focus is not normally enough on its own. But whether the company uses Cost Focus or Differentiation Focus, the key to making a success of a generic focus strategy is to ensure that it offers its customers that ‘something extra’ as a result of serving only that market niche. The “something extra” that the organizations adds can contribute to reducing costs or to increasing differentiation.

As with its suppliers, the organization does not enjoy the bargaining power because of the lower volumes. But, because of practically no other substitutes to compete with, the company can pass on benefits to its customers.

Examples of niche markets are organic foods which are more expensive, but with promise of better quality and enhanced for environment protection. Another example of a niche is of traditional 35mm film cameras and films; these have become rare. The producers no longer enjoy the same economies of scale, but some consumers still like to use it. The internet has amplified the potential for niche markets and niche businesses. Because of it, the startup cost has been reduced and made it easier to reach a small number of niche customers.

The best example I would quote here is of Café Coffee Day in India. This chain of coffee restaurants brought in the concept of cafes to India where the young and the old can sit for a while, chat, discuss, and meet over a steaming cup of coffee. The first one opened in 1996 on Brigade Road in Bangalore. At CCD, people can have leisure meetings. Nobody disturbs or asks you to vacate the table. The concept instantaneously became a hit. It has a target audience of educated, serious people in big cities and metros where meeting places are in shortage.  Another appreciation CCD has capped is that there are also 11,000 small growers in India from whom they source coffee from.

Porter’s advise on choosing the right strategy: Porter says that organizations must spend time and efforts before they make choice of which generic strategy to pursue because it underpins every other strategic decision. He cautions organizations to use not more than one strategy. One of the most important reasons why companies must use only one of the three strategies is because the entire planned feeling revolves around it. Cost Leadership requires a very detailed internal focus on processes. Differentiation, on the other hand, demands an outward-facing, highly creative approach. So, when companies need to choose one out of three strategies they need to take into account their SWOT analysis. Also organizations need to do the five force analysis of the industry. After doing so the following questions need to be answered:

• Whether supplier’s bargaining power can be reduced or managed.
• Whether customer’s bargaining power can be reduced or managed.
• How to face rivalry among the existing players.
• Whether substitution threat can be reduced or managed.
• Whether threat of new entrants can be managed.

Thus, companies must select the generic strategy that gives them the strongest set of options because it is the starting point of strategic decisions making.

About two decades back when manufacturing dominated almost all progressive countries such as the UK, the US, France and Germany, the physical layout of production units such as factories was not very important to the end consumer because they never went inside the factory. However, today’s consumers are keen to know how goods are processed, what goes into it, how safe is the product for usage, the package, aesthetics etc besides the price of course. Today customers are becoming very demanding because of the dominance of e-commerce and retail chains in supply chain, and ever increasing substitution of products available to them.

The entire value chain is stressed to offer various facets in the product and that too for a multiple segments. Today’s customer seeks high level of presentation in the retail outlets; the retail business literally depends on visual merchandise for a perfect presentation, customers want to easily find their way around the store, and want an enjoyable shopping experience.

The importance of quality physical layout is important in a range of service providers, including: students going to college or university have far higher expectations about the quality of their accommodation, mentoring, and learning environment than in the past. As a result colleges and universities are forced pay far more attention to creating attractive learning environments, student accommodation, shops, libraries, playgrounds, bars and other facilities; which is of course good.

Air passengers expect attractive and stimulating environments, such as plush departure lounges, with activities for young children, good food on flight and efficient flight attendants.

Hair dressing and beauty salons are expected to provide pleasant waiting areas, with attractive reading materials, access to coffee for customers, good music and of course good beauty products and efficient beauticians.

While the fact is nobody likes to go to hospitals; but when they need to go patients these days expect services of five star hotels, good lounges, restaurants, helping and positive attitudes of healthcare workers, cleanliness and all under one roof services. If organizations ignore marketing, they find themselves lagging behind.

The man behind the four Ps was Jerome McCarthy. He suggested the 4 Ps classifications in 1960. McCarthy emphasized on product, price, place and promotion as the main four elements and just few about years back, Philip Kotler talked about shift from the four Ps to four Cs.  He expressed in one of his interview that the 4Ps have become 4 Cs because of the customer imperative, the value challenge, and the increasing value of mega distribution. The skills and talents of the marketing manager recline in making the offer to customers in the most attractive manner.  The Marketing Manager is no less than an artist; he has to proportionately add, subtract, replace, and centralize the elements of the mix – The Product; The Price; The Place and The Promotion. Hence, the marketing mix is a value-delivering tool of the marketing function.

One of the glaring challenges that most brands across the world face today is of lowering brand loyalty from the consumers.  The brands are ‘commoditized’ no sooner they enter markets.  At the consumer level, on one hand we are seeing an increasingly more globalised consumer – one who is tuned in almost real time to trends and aspirations across the globe.  Increased access to electronic and traditional media, the Internet, and more frequently (and more adventurous) travel outside the home frontiers are some of the factors that have led to the globalization of the average consumer. At the business level, the most challenging development is consolidation across all kinds of industries – be it travel, education, health, transportation, telecommunication, banking, consumer durables, or retail. The consolidation is not limited within the traditional geographical boundaries but is increasingly becoming cross-national and cross-continent; as a result, local and national brands are struggling literally to retain their identities in the consumer’s mind share. Many brands are living a very short shelf life.

The evolution has been brought in fundamental changes to the basic Marketing mix. Where once there were 4 P’s to explain the mix, nowadays 3 more Ps have added to layer of depth.

In the late 70’s it was widely acknowledged by marketers that the Marketing Mix should be updated. This led to the creation of the Extended Marketing Mix in 1981 by Booms & Bitner which added 3 new elements to the 4 P’s. The older 4Ps and 3 more new Ps of marketing mix are extended to both tangible and intangible products.

The extended 3 Ps are as follows:

People: Organizations are reliant on the people right from shop floor to the Managing Director. Having the right people is crucial because they are as much a part of business offering as the products/services offered by the organization. The three main tasks for employee engagement are: culture, managing style, and hiring. The performance and attitude of people can result in the success or failure of a business.

Processes: The delivery of a product or service is usually done with the best of management practice. The thumb rule for success of any product is that when the customer pays for the product/service he should feel satisfied. Most competitive organizations use 6 SIGMA tool for optimizing best product output. Continuous efforts to achieve stable and predictable process results by reducing process variation. Manufacturing and business processes have characteristics that can be measured, analyzed, controlled and improved. Achieving sustained quality improvement requires commitment from the entire organization. This happens particularly from top-level management. Six Sigma project helps a clear focus on achieving measurable and quantifiable financial returns. 6 Sigma works efficiently when an increased emphasis is laid on strong and passionate management. It doesn’t give room for assumptions and guess work.

Physical Evidence:  This refers to the way a product, service, and everything about the company, appears from the outside, or is perceived by the customer. The physical evidence is about packaging. It is about the presentation of an organization, person or thing in an advantageous way. In physical packaging the size, shape, color, material, UPC bar code, and label of the packaging matters as much as its aesthetics. This should be customer tested and updated when needed.  It should fall in line with organization’s other product offerings as well.  Packaging involves the visual layout, practical setup, and when needed for products, clear and precise installation instructions. Product liability insurance is needed in case anybody suffers any harm from the product. Engineering tests are also needed to make sure that the package can stand any break.  There may also be regulatory issues to consider. Visual packaging of a tangible product can make or break a purchase.  Small improvements in the packaging or external appearance of the product or service can lead to completely different responses from customers.

Is there place for 8^thP?  Some marketing experts are of opinion that the extended marketing mix should evolve of Productivity. It is about how well people combine resources to produce goods and services. It is about creating more from available resources, such as raw materials, labour, skills, capital equipment, land, intellectual property, managerial potential and finance. With the right combination, higher production, higher value and higher incomes can be achieved for every hour worked. Productivity helps in managing costs.

In conclusion, even after 54 years the original marketing mix cannot be ignored. It is applicable for every business every day. Jerome McCarthy’s well thought 4 Ps – Product, Price, Place and Promotion and additional 3 Ps added in 1981 by Booms & Bitner’s People, Process and Physical Evidence are the core of any business.  In my opinion, the 8^th P – Productivity should also be added to the extended marketing mix. And, a good marketer is the one who adapts the Ps  suitably to his offering.

Importance of product positioning

There are a variety of definitions of product positioning, possibly the most common is: identifying and attempting to occupy a market niche for a brand, product or service utilizing accurate marketing mix strategy i.e. product, price, promotion and place (distribution).

 Positioning is an essential part of launching a product in the market. Positioning simply revolves around image of the product and its company. It creates a position for self in the minds of the customers and hence the term “positioning” is used. The fashion in which a product portrays its utility and its benefits in the minds of customers makes a difference in its standing in the market. Positioning strategy can change the perception of the product. A product stands out amongst an array of products on a shelf.

 Horlicks: it’s one of the leading malted milk drinks. Do you know that Horlicks came to India with British Army during end of World War-I; Indian soldiers of British Indian Army brought it back with them while returning home. It was given to the soldiers as a diet supplement. Punjab, Bengal and Madras Presidencies became early adopters of Horlicks and lot of well-to-do Indians adopted it as a family drink from early 1930s to 1950s. It was invented in 1873 by James Horlicks, the brand has been available in India for almost above 85 years.

 Glaxo Smithkline (GSK) has changed the positioning strategy of Horlicks as per the changing times. From being a drink taken only during convalescence the brand has repositioned itself since the seventies as a ‘great family nourished’ drink. It became a sort of status symbol in upper middle class and rich Indian families.  India, even today is by and far, the biggest market for Horlicks, here it has traditionally been marketed as ‘The Great Family Nourisher’.

The Indian formulation for Horlicks is slightly different than in most other countries; in India it is manufactured from cow milk whereas in other countries it is manufactured from buffalo milk.   Horlicks has added many new flavors in India such as vanilla, toffee, chocolate, honey, and elaichi. The current line-up of flavors includes original (malt), chocolate and elaichi and the latest offering is Kesar Badaam.

 According to an Economic Times Survey of 2004 Horlicks is the leading health food drink in India and as the “Most Trusted Drink Brands.” It enjoys more than half of the health food drink market. GSK has used brand rejuvenation after regular intervals by giving it a different packaging, product alteration in terms of flavors, new advertising tactics, a sturdy distribution and comparable pricing. Horlicks is going strong in India in spite of tough competition from Boost, Complan, Bournvita, Viva and Maltova.

 Horlicks jars occupy a visible position in many Indian and Bangadeshi households. The former sturdy glass jars are used to stalk grains, massalas, and sugar even today. They are so strong that they have lasted for over 2-3 decades in some households. Isn’t this one of the strengths of brand positioning? I recall this in my childhood women would buy Horlicks every month for two reasons one for nourishing their children and two for decoratively storing their shelves.    Successful segmenting, a focus on the target markets, innovating the product regularly as per changing taste of consumers, tinkering the product packaging design and shape has helped Horlicks’s positioning in the market for over eight decades. Most notably, its consistency in maintaining product quality and strengthening of essential nutrients has won over the trust of generations of mothers. The brand gives guarantee of nutrition and growth that all mothers seek in for the kids. With its superior taste and constancy in quality it has become the adorable brand among kids and mothers.

Positioning matters in how a product is defined by the marketer, what it does – its benefits, what it means and its effects in short, it must inspire the consumers. For a good positioning inventive and stimulating marketing communication is a must. Of course, the positioning involves product packaging and design aesthetics, pricing, performance, references and the media vehicles used for its promotion. Positioning therefore exists in the customer’s minds. People do not like to change a product if it matches their taste and comforts therefore, positioning must exhibit product’s relevance in terms of its usage, benefit and its credibility.

Ray Ban sunglasses have been reining the market for ages. Ray Ban had created its trade mark convincingly; its craft, its usage, its design and the price – it’s positioning is based on quality consistency and craftsmanship. It was the first brand of goggles which introduced the U.V and the post-red secure glasses in all the designs and gold plated frame in aviation segment. This added to its firm positioning. Post World War I the aviation sector saw a boom. The 1920s was a decade of remarkable advances. As a result of which air traffic grew tremendously. With the development of new airplanes that could fly higher and higher came altitude-related problems. Pilots were suffering from headaches and nausea because of glare and the great distances that they had to navigate. In 1929, General MacCready asked Ray-Ban for a new type of air force eyewear that would protect pilots from glare at high altitudes while at the same time ensuring a clear field of vision. The company took up the challenge and succeeded in developing a new pair of glasses with lenses that could block out a high proportion of visible light. This marked the birth of Ray-Ban’s first, green-lens ANTI GLARE eyewear. In 1936 the first model went on for sale to general public. They were featured in a plastic frame with the classic Aviator shape.

 The Ray Ban glasses come in various shapes and sizes; perhaps that’s why you see them protecting most eyes in the world. The product offers good quality, warranty and after sales service and hence people trust its credibility. You will see hoards of people using them while rock climbing, on beaches, while jogging or walking. Wearing Ray Ban glasses has become fashion trend. The elegant yet conventional glasses are sold all over the world. Its whole body styling defines the design and style contention into a conventional manner. Ray Ban sale comprehends the luxury and royalty; it adds to the dignity of the user. It comes in five variants of color shades. It offers feminine and elegant glasses for women. Its classic appeal with delicate frames, great colours and profiles are awesome. They are so elegant, that females can simply flaunt them. Ray Ban stands tall while giving tough fight to Maui Jim, Versace, Oakley, Persol, Tom Ford, Burberry, Prada, Revo and many more brands.

Product quality is the major aspect in positioning of a product. It consists of intensity and consistency of the quality, how it is perceived by the customers and the appeal. The features both physical and intrinsic characteristics contribute to its benefits. The design of the product adds to its appeal.

The brand name, logo, needs serious thinking by the marketer. The brand name contributes to positioning exercise. The power of the brand name cannot be underestimated.

Packaging helps handling of the product. For example in the example of Horlicks; its glass jar helped the positioning of it. People got so used to using the jar for storing household items that women would insist on buying Horlicks for collecting the jars.

Labeling incorporates the written information about the product and usually is printed on an adhesive sticker. Label is an identity of a product. It helps business promote their product and catch people’s attention. It is beneficial to consumers as it gives information about ingredients, price, manufacturing date, which help customers distinguish goods from one another.

The elements listed above add to the competitive advantages of the product; good and consistent quality, features, design, packaging, labeling and after sales service help in strategic positioning of a product. The positioning needs to be done by placing it within an obtainable category.

Before I finish, positioning idea must be clear in terms of both target market and degree of difference in advantages suitable to different segments. The target market should be clearly demarcated and identifiable in terms of demographic or geographic parameters, or a combination of both. When marketers cannot resist offering the product besides targeted market, the clarity of the communication becomes blurred; the value proposition of the products narrows down. This situation can create threat to the product’s existence in a market. Clearness, Constancy, Credibility, and Competitiveness – all 4 Cs are the inputs to successful positioning.

A jingle is a short tune used in advertising; it contains one or more hooks (it’s a musical idea which often is a short riff, passage or phrase) which helps promote explicitly of a product or service. Jingles are hummable, catchy little slogans. They are typically a form of sound branding. Because we can hum them, they are phrased with catchy words which can be remembered easily. Jingles live a longer life. Though they seem trifling, they are successful at getting us to remember a product, to buy the product and even make us think we need the product to be accepted or successful.

The first jingle was born in 1926 in Minneapolis, Minn. when an a cappella group played a quartet in praise of “Wheaties” – a General Mills breakfast cereal. Executives at General Mills were actually about to withdraw Wheaties from the market, but when they noticed a point in its popularity in the regions where the jingle was aired, they changed their minds. The company decided to air the jingle nationally on the radio, and sales went through the roof. Eighty years later, Wheaties is still a household staple in kitchens across the globe.

Since then, jingles have become an important part of any advertising campaign. Some jingles will never die, and they have become a part of our lives. Effective jingles have the capacity to build tremendous brand equity of a product. A successful jingle promotes a positive image, making the consumer more likely to want to purchase the product.

Music can fulfill several tasks when it is used in advertisements. The appealing and entertaining aspect of music helps making an advertisement more interesting. Captivating jingles can make the commercials attractive and engage attention of viewers. From this point of view music need not necessarily manifest any special affinity with a particular product or service in order to play an effective and useful function. The music functions more as bridge between viewer and advertisement. Another basic attribute of music is to support an advertisements structure and continuity. Music adds dramatic approach to a TV or radio commercial. The narrative of the commercial becomes more meaningful with the music. Jingles are also called ‘Singing commercials’ and they have made a self-contained genre.

Look at the lingering jingle of Nirma washing powder; it is one of the most famous jingles. It’s been years down the line but the jingle of Nirma is still jingling in the ears of Indian People. It was of no importance whether the detergent gave clothes the “Dhood si Safedi” or not. But the feisty and spirited ad made a marvel out of the brand. Think of Nirma and the picture of a little girl twirling around with her white frock cannot be forgotten. This jingle has become so familiar in our minds. Nirma took on the might of giant multinationals and wrote a new chapter in the Indian corporate history!

Jingles have the poetic and emotional appeal; it scores over logical, informational advertisements. I think this happens because music can provide a message without the customer consciously noticing it. For providing rational facts in the same time “mixtures of speech and song provide advertisers with opportunities for both logical and factual appeals. Music can therefore function as a nonverbal identifier for certain groups with different musical taste.

Do you know that in sixties and seventies companies wishing to advertise on Radio used external radio stations like Radio Ceylon and Radio Goa (then Goa was under Portuguese control). Radio Ceylon was a popular station as it aired film songs, which was banned on All India Radio (AIR) because the then Information & Broadcasting Minister Mr. Balkrishna Vishwanath Keskar – who thoroughly disapproved of film music. However, in 1965 when Ms. Indira Gandhi was Information & Broadcasting Minister under the Prime Minister Mr. Lal Bahadur Shastri, she changed things. In 1966, Ms. Indira Gandhi became the Prime Minister and she gave serious attention to the use of Radio as a mass media. In 1967, the government accepted the recommendations of an expert committee under the former Director of AIR – Krishna Chandra Sharma. And ads started broadcasting on radio which further saw a spurt in sweet and melodious radio jingles.

Even today the jingle “tandurasti ki raksha karta hai Lifebuoy, lifebuoy hai jahan tandurusti hai wahan” rings in our ears. Similarly ‘Utterly, Butterly, Delicious AMUL’ was another great success.

In the seventies India witnessed a lot of new agencies being set up, including the Mumbai-based Rediffusion, Trikaya Grey and Chaitra and the Chennai-based R. K. Swamy & Associates. Reliance Group setup Mudra Communications in Ahmedabad. In 1977, Doordarshan started accepting ads. It changed the life of Indian ads radically and brought a qualitative leap in making of ads. I still remember the first TV ad was a still for the Topaz brand of razor blades from the house of Malhotras and the first ad prepared for TV was of Jenson & Nicholson modeled by Dalip Tahil and Maya Alagh arguing over the color of their bedroom. This ad was created by Rediffusion. There were only 3 TV Programs on Doordarshan. I still recall we never got irritated when in between the programs ads were played. The programs were: CHITRAHAAR, PHOOL KHILE HAIN GULSHAN, GULSHAN and Sunday Evening Feature Film. And, due to TV ads, lesser known brands were marketed with ease all over the nation.

And then in early eighties the Hawkins Pressure Cooker jingle sung by Preeti Sagar (My heart is beating, Film Julie singer) the jingle words were “Hawkins ki seeti baji, khushboo hi khushboo udi, Mazedaar, lazzedaar khaana hai tayyar, aji khaana hai tayyar! Murg Musallam, Tomayyto Soup, Matar Pulao, Maaki Daal, Kheer aur Dum Aloooooo Har vyanjan swadisht banaaye, minton mein jhatpat pakaaye Hawkins! Hawkins! Hawkins Pressure Cooker! Every Indian household thought of buying the Hawkins Pressure Cooker.

Alyque Padamsee of Lintas was approached by Lever Brothers to write an ad film for HAMAM. He drafted script showing a bikini model bathing with HAMAM under a waterfall. This idea was absolutely rejected by Lever Brothers considering that Indian housewives are restricted to kitchen, and they rarely go out for a picnic or a movie. Padamsee then made a simple ad “chehre ki sundertaa ko nikharta HAMAM”. See how ads show the transformation in society, its culture and philosophy – time passed and Lever team once again told Alyque Padamsee to write another ad film for a new soap – LIRIL. Alyque took out the old and rejected script from his cupboard, changed the title from HAMAM to LIRIL and rest is the history. Within 10 years the Indian housewife was elated from her mundane surroundings to a more confident and earning woman. The Liril ad showcased the modern and liberated Indian woman to the world. It was the hottest ad in the early 80s. Which showed the LIRIL girl drenched under the falls wearing only bikini? The ad was all about waterfalls, abundant water and the girl splashing about. The background score was “la…la la la laaa..”. The la,la, la notation just went about with a hummable tune. The first Liril ad was a masterpiece of with unmatched caliber; it was a product of Alyque Padamsee’s imagination. It was shot in Kodaikanal at a waterfall a little beyond Guna caves. LIRIL brand became largest selling brand of soap in Luxury Soap Segment. Both men and women used it!

I recall this sweet little jingle of Bajaj Electricals. It seems Bajaj Electricals made a historical success by giving a fight to Philips bulbs with their jingle “Jab mein chhota baccha tha, badi shararat karta tha, meri chori pakdi jaati,…aur roshnee karta Bajaj” the attractiveness of this jingle is haunting. The ad shows a kid hiding and reading comics, then a young man sneaking in room from window and at the last shot of an old man sneaking into the fridge for some sweet.  The changeover in pitch and tone from a childish jangle to the old man’s rattle is so fascinating in this jingle.

Some of the older jingles can still bring a smile on our faces. They are inseparable from our lives. They have become iconic and like diamonds they will remain with us forever.