Appraisal

Of
Marketing Communication Mix
Of
AAA

Prepared for: Mukuul Khandelwal (Marketing Manager)

Prepared on: May 25th 2007
Prepared by: 11404588

Core
Word Count – 3130
(Excluding of headings, table and diagrams)

TABLE OF CONTENTS Page No.

1. INTRODUCTION 3 -4
1.1. BACKGROUND TO AAA 3
1.2. PRODUCTS 3
1.3. MARKET / COMPETITION 3
1.4. TARGET SEGMENT 4
1.5. COMMUNICATION OBJECTIVES 4
2. ROLE OF MARKETING COMMUNICATION IN AAA 4
3. APPRAISAL OF THE USAGE OF MARCOM MIX FOR AAA 5
I. Range of Communication tool 6
A. ADVERTISING - PRINT
B. ADVERTISING - BROADCAST
C. SPONSORSHIP
II. Analysis of AAA’s Current Communication mix 8
4. RELATIONALSHIP MARKETING 8
4.1. Balance between Customer Acquisition & Customer Retention 11
5. ANALYSIS OF AAA’S APPROACH TO RM 12
6. RECOMMENDATION 12

Diagrams
The Six Market Model

The Benefits to the firm- The RM ladder of loyalty

APPENDIX 1
APPENDIX2
BIBLIOGRAPHY

To: Marketing Manager

From: 11404588
Date: May 25th 2007
Subject: Appraisal of Marketing Communication Mix

1. INTRODUCTION
This report starts with introduction of AAA, its target audience, and communication
objectives. It goes further with analysis of the role of AAA’s current marketing
communication mix to achieve its communication objectives.
Next part of this report contains a brief summary of relationship marketing approach
and analysis of AAA’s approach to it.

1.1. BACKGROUND TO AAA

AAA is a major player in ‘Bleach’ and ‘Hair removing cream’ category in India. AAA
is always seen as a pioneer in this category and is enjoying more than 50% of the
market share.
AAA is a trusted brand known throughout India since 1972. The company has a
reputation of introducing new product concepts since its inception. The annual
turnover of the company is INR 50 crore.

1.2. PRODUCTS
AAA has total of 9 products under FMCG division. Out of them 6 are under
cosmetics category and 1 personal care.

FMCG
Cosmetics Personal Care Fabric care
 Fairness Bleach  Soft gentle Soap  Cuff & Collar Cleaner

 Perfumed Blue Bleach  Fabric Softener &

Conditioner
 Hair removing Cream

 Oxy Bleach

(See Appendix -1)

1.3. MARKET / COMPETITION

AAA has significant market share in some of niche segment like liquid hand wash
soap segment. The other market where AAA has major presence is ‘AAAale hair
removing Cream.’ This ‘Niche’ segment in India was untouched sometime ago and
 AAA was enjoying this. But now with the launch of international brand VEET and
other brands competition is increasing.
Globalisation and entry of foreign cosmetics company in Indian market made the
competition tough. India is now become a hot cake as a market because of its large
population with good buying power. Almost all giant global players in cosmetics
industry have their presence in India.
All major competitors of AAA are big global companies with experience of various
markets and market orientation approach. They spend a good amount of budget and
efforts on strategy planning specially promoting their products. This made AAA to
evaluate its communication strategy to see where it stands among the competition.
1.4. TARGET SEGMENT
Segment 1 - AAAales from urban & semi urban parts of India in the age group of 25–
34. They belong to SEC A, B and C1. Majority of this group is working class.
Professional and social life of this segment is quite active. Meetings, presentations,
clubbing and partying takes major amount of their time. AAAale belong to this
segment wear western clothes and conscious of her appearance. These AAAales are
either engaged, newly married or looking for someone.High usage rate.

Segment 2 - AAAales from urban & semi urban part of India in the age group of 15-
24. Belong to SEC A, B, and C1. Most of them are studying in good colleges. Love to
party. Wear T-shirts, sleeveless, jeans, skirts. Conscious about look and appearance.
High usage rate.

1.5. COMMUNICATION OBJECTIVES

Current communication objectives of AAA are following.
1. Increasing awareness by 45% among AAAales from the age group 15 – 34 in
SEC ABC1 with current communication campaign (Jan – Mar 2007).
2. Easy recognition of AAA as a brand and its products.
3. Position AAA as a healthy cosmetic brand
4. Attracting switchers and shifting loyals to try AAA’s products.

2. ROLE OF MARKETING COMMUNICATION IN AAA

Before analysing the role of marketing communication in AAA it is useful to know the
overall role of marketing communication in any organisation. How it is related with
the Marketing objective, marketing strategy and corporate objectives. The illustration
below shows where marketing communication (promotion) fits into overall marketing
process. Promotion helps in creating awareness about the product, inform target
audience about the product and if done in a proper way convert a product in a brand.
 Corporate goals / Objectives

The Marketing Process

Marketing Analysis

Marketing Strategy

MARKETING MIX
(Tactical tools to implement strategy)
Product
Price
Place
PROMOTION
People
Processes
Physical evidence

Controls

The primary concern of the AAA in current competitive market is to protect its share
and persuade consumers to buy more often. As per AIDA model to persuade a buyer
to buy a product first step is that he should be aware about that offering. As AAA has
launched so many new products and more are in the pipeline, creating awareness
about those product is one role of promotion. This will help in achieving the
marketing objective of gaining more market share.
FMCG market especially cosmetic sector is much cluttered with so many offerings. It
is very important for AAA to distinguish itself from the other products and achieve a
good recall. The positioning of the AAA is based on ‘beauty with health’. The current
marketing adverts are communicating this positioning.
AAA runs its advert and other communication all through the year to maintain the
share of voice. Consumer’s memory is very short and in a day he exposed with almost
5000 messages and out of that so many are for cosmetics product. If he is not exposed
with a message for a product he assumes the product is no longer available in the
market. The current advertising and media plan is designed in a way so this situation
doesn’t arrive.

3. APPRAISAL OF THE USAGE OF MARCOM MIX FOR AAA

AAA is using primarily ‘Above the Line’ communication to communicate with its
target audiences. In ATL it heavily depends on print and Broadcast.
In ‘Below the Line’ activities AAA sponsors only one event ‘Women achievers
award’. AAA has been associating itself with the Women Achievers Show since
2001.
 Further is the appraisal of the each communication tool which is in use for AAA.

I. Range of Communication tool

A. ADVERTISING - PRINT
As a normal industry trend AAA also spend most of its budget on print. AAA uses
print media for its entire cosmetic line products i.e. AAA Fairness bleach, AAA
perfumed blue bleach, AAA hair removing cream, AAA oxy bleach, AAA botanica
ultimate. Surprisingly for the cash cow ‘AAA Soft Gentle Soap’ there is no print
advert for a long time. The last print adverts AAA did for the soaps was with famous
model than and now actress Mahima Chowdhary.
Media vehicle used:
AAAina
Women’s era
Grih-shobha
Fimfare

How print media is helping AAA to achieve its communication objectives:

 All these magazines are seen as trendsetter and enjoy good credibility which helps
AAA to create a good image.
 These entire magazines have national presence which helps AAA to get a wider
reach. Helps in creating awareness.
 Reproduction quality of AAAina & Filmfare is of excellent quality which is very
much require for cosmetics. Colour representation of product helps in easy
recognition of the product on shelf.
 Longer shelf life
 Descriptive nature of this media enable to talk more about product features
 Less wastage, target audience of these magazines and target audience of AAA are
almost same.

Limitations of print (magazines) in achieving objectives

 All these magazines except Grihshobha are mainly urban centric they don’t have
that much penetration in semi urban areas where a large percentage of AAA’s TA
resides
 Being so famous and widely read these magazines are full of adverts of same type
of products making ‘clutter’
 No wider presence in Hindi magazines.
For targeting North Indian – Hindi speaking market which is very big market for
cosmetic products, a good Hindi magazine is required.

B. ADVERTISING - BROADCAST
AAA uses only TV in broadcast media. AAA has a nationwide distribution so TV is
the right medium to talk to its vast target audience spread across India.
Media vehicles used in TV
Star TV
Zee TV
MTV
Sun TV
 How TV is helping AAA to achieve its communication objectives:
 Nationwide presence of these channels helps to create mass awareness
 Use of audio and video tools help in creating aspiration which is very much of a
requirement for a cosmetic brand to build its image.

Limitations of TV in achieving objectives

 So much clutter, for example in a single episode of a programme on Star TV there was
six ads of various cosmetics products other then AAA.
 Most of the cosmetics ad are so common in execution its tough to make difference
AAA is also fall in same trap
 High wastage
 Surfing habits of viewer, due to so many channels available and ease of changing
channel just by pressing button, tough to get viewers attention.

C. SPONSORSHIP
AAA sponsor ‘Women achievers Award’ (FWAA) Associating AAA with women
achievers award is a deliberate decision of Sunita Ramnathkar, the joint managing
director of AAA, who revolutionized the Indian cosmetic industry. As she states ‘it is
the inner beauty that reflects outside’.
AAA has been associating itself with the Women Achievers Show since 2001. In an
earnest attempt to celebrate the dignity of womanhood, this annual event
acknowledges their achievements and brings to the spotlight the contributions of
womenfolk in their respective spheres of vocation and simultaneously supports the
cause of cancer patients. Last year the show took place on September 12 and it was the
second time that the show was taking place in Mumbai.
"Women from all walks of life are felicitated at this show and they also walk the ramp
to create awareness about breast cancer and aid the Cancer Patients Aids Association,"
informs Sunita.
(Source –Afternoon: September 08, 2004)

Some of the women achievers last year were Dr. Swati Piramal, Mona Singh (Jassi),
Schauna Chauhan, Rakshanda Khan, Isha Koppikar, Neelam Kothari, Priya Dutt and
Meher Banaji.

How FWAA is helping AAA to achieve its communication objectives:

 As major target group of AAA is working women who wants to achieve something in
her life contrary to a housewife, by associating itself with women achievers award
AAA is creating a positive image among its target audience.
 FWAA is concerned about the breast cancer and create awareness about breast cancer.
This again shows the social responsible side of AAA as an organisation.

Limitations of FWAA in achieving objectives

 Focused on only two major cities Delhi and Mumbai in last six years, which narrows
its focus on these two metropolitan cities only i.e. small reach.
 Show is not generating adequate PR publicity for AAA.
II. Analysis of AAA’s Current Communication mix

POSITIVES
 Print and TV are the right medium because of its vast target audience spread across
India.
 Women magazines like AAAina are right medium to target mobile working class
women and students.
 The umbrella branding strategy adopted by AAA created awareness about AAA’s
product and the brand AAA. All products carry AAA logo on their packaging. But the
new launch Oxy bleach is not following this approach. Neither in its communication
nor on packaging it carries AAA logo. Which is the deliberate decision of AAA
because it breaks the conventional uses of bleach and position itself as new revolution
in bleach segment.

NEGATIVES
 No integration of all communication tools.
 All our communications are just one advert, no campaigns.
 Adverts are not breaking the clutter. As mentioned above AAA adverts are also
following the same execution approach as by others brand.
 In this era of ICT if any one wants to know about any product or any organisation
goes to internet or specially goggle. Unfortunately search for the word AAA in Google
not produces any link of AAA company or any of the brand on its first page. Even
worst the search for ‘AAA care’ take to the person to AAAcare Nikomed which is into
some sort of medical business.
‘AAA care pharma’ in Google search bar provides some links to other sites which
carries some information about AAA but still no link of AAA’s website.
 As communication is turning from Broadcasting to narrowcasting other companies are
reducing their ATL budget and increasing BTL activities. AAA has still not adopted
this approach. Till now we are sponsoring just one event ‘AAA Women Achievers’
Award’. Which is also not giving us that much of media publicity.

4. RELATIONALSHIP MARKETING
According to Gordon (1998)- Relationship marketing is the ongoing process of
identifying and creating new value with individual customers and then sharing the
benefits from this over a lifetime of association. It involves the understanding,
focusing, and management of ongoing collaboration between suppliers and selected
customers for mutual value creation and sharing through interdependence and
organizational alignment.
Source – Hollensen (2002)

‘Relationship Marketing’ concept was first mentioned by Leonard Berry at Texas

A&M (Berry L.1982) ad Jagh Seth at Emory.

Source - Hansen, Thurau (2000)

Relationship marketing first became evident in B2B marketing but now this approach
is increasingly found in the services sector and in consumer marketing.
Source – Lancaster, Massingham, Ashford, (2002)
Relationship Marketing;
 Emphasises a relationship, rather than a transactional, approach to marketing;
 Understands the economics of customer retention and thus ensures the right
amount of money and other resources are appropriately allocated between the two
tasks of retaining and attracting customers;
 Highlights the critical role of internal marketing in achieving external marketing
success;
 Extends the principles of relationship marketing to a range of diverse market
domains, not just customer markets;
 Recognises that quality, customer service and marketing need to be much more
closely integrated;
 Illustrates how the traditional marketing mix concept of the4p’s does not
adequately capture all the key elements which must be addressed in building and
sustaining relationships with markets;
 Ensures that marketing is considered in a cross-functional context.

Source – Christopher, Payne, Ballantyne (2004)

The Principles of RM
1. Extending the ‘lifetime value of customers through strategies that focus on
retaining targeted customers. Maximising the lifetime value of a customer is a
fundamental goal of relationship marketing.
‘Customer Lifetime value’ is the value of the entire stream of purchases that the
customer would make over a lifetime of patronage. (Kotler)
Adopting the principle of maximising customer lifetime value forces the
organisation to recognise that not all the customers are equally profitable. This can
be done by Pareto’s 80-20 rule.
2. Forging relationship with a number of market domains or ‘stakeholders’ to achieve
long term success in the final marketplace.
The ultimate aim of RM strategies is to complete successfully for profitable
customers. But to do this firm need to define more broadly the markets that need to
be addressed. RM recognised that multiple market domains can directly or
indirectly affect a business’s ability t win or retain profitable customers. These
markets are shown below in the ‘six markets model’. (see the next page)
3. Marketing has moved from being the sole responsibility of the marketing
department to become ‘pan-company’ and cross-functional.
4. Focus on customer share not market share. When market matures and the growth
rate declines, the cost of winning extra percentage points of marketing share can
be prohibitive. RM focuses on longer term relationship with fewer but more
profitable customers (customer retention).
Source – Christopher et al. (2004)
Fig 1 - The Six Market Model-

Internal Markets
Internal marketing: every
employee is an internal
Customer or an internal
supplier
Referral Market
Suppliers Creation of advocates (besides customers): intermediaries,
Market agencies etc.
Collaborations
with key suppliers
Customer Markets
(Customer retention, CLV)

Influence Markets
Recruitment Industry related
influencers:
Market
Association, government
Human resources/
departments
skilled people

Source: Payne (1995 cited in Hollensen 2002)

Fig 2 - The Benefits to the firm- The RM ladder of loyalty

PARTNER

ADVOCATE

SUPPORTER

CLIENT

PURCHASER

PROSPECT

Source – Peck, Payne, Christopher, Clark,(1999)

4.1.Balance between Customer Acquisition & Customer Retention

Customer Acquisition
Most of the marketing oriented companies are actually ‘market driven’. In these
type of organisation ‘pressure’ and ‘challenge’ in front of marketer to capture
maximum ‘share of market’ as early as possible. This led them to focus on volume
and market share. This approach is traditionally known as ‘Transactional
Marketing’.
Source – Christopher et al. (2004)
The model of TM rests on three assumptions:
1. there is a large number of potential customers
2. the customers and their needs are fairly homogeneous
3. it is rather easy to replace lost customers with new customers
Source – Hollensen (2002)

But now this approach is not appropriate in modern scenario where `competition is
increasing fast and markets are getting smaller. Now the focus is shifting from
customer acquisition to customer retention.

Customer Retention
Management consultant Bain & Co has found that a 5 percent increase in customer
retention can increase a company's profitability by 75 percent.

Source -
http://www.bain.com/bainweb/consulting_expertise/capabilities_detail.asp?
capID=102 , accessed on 25th April 2007

According to ‘Peppers and Rogers’ it can be up to ten times more expensive to

win a customer than to retain a customer – and cost of bringing a new customer to
the same level of profitability as the lost one is up to 16 times more.
Existing satisfied customer can make up about two thirds of the volume for an
average business.
Source – Hollensen (2002)

Balance Between CA & CR

Without customer acquisition, customer retention is not possible. For an
organisation transactional approach is as important as relationship approach. Both
this approaches are very important part of any marketing strategy. Nowadays all
major companies are using combination of both TM and RM in their marketing
strategies. Below are the reasons why both this approaches are important for any
organisations:
 Retaining of customer can be done after the customer acquisition so it is
important for any company to use both the approaches.
 Customer acquisition is important to gaining market share which decide
the position of a firm in the market and customer retention helps in
increasing customer share which increases the profitability and generate
more cash flow to invest.
 An organisation has both the short term and long term objectives.
Transaction marketing helps in achieving short term objectives and with
 the help of relationship marketing firm can establish a long term
relationship with its customer to maximise CLV.

5. ANALYSIS OF AAA’S APPROACH TO RM

After examining AAA’s communication and marketing mix the conclusion is that
AAA’s approach is purely transactional. AAA’s communication mix is targeted
towards first time buyers. Still AAA hasn’t identified more profitable customers from
the current customer group and no communication is targeting them.
For example in ‘liquid hand wash soap’ AAA used to enjoy a major market share of
over 60%. But failed to retain the customers and lost a major chunk of its market share
to Dettol and Lifebuoy.
In past AAA tried to adopt relationship approach but was not able to implement it
successfully. Below are some points where AAA is lacking in relationship approach:
 Lack of customer- organisation ‘touch points’. There is no direct
communication between AAA and its consumer. Surprisingly there is nothing like
customer care centre for customer if he has any complaint or suggestion about
product.
 Deficient in timely response. As a little exercise I sent a general query about a
product via mail to AAAcare pharma (our organisation), Lakme India and
AAAfresh UK. I got the fastest reply from AAA fresh UK and Lakme within 48
hrs. But to the greatest disappointment still I haven’t got any response from
AAAcare.
 Lack of interactive website. The only touch point between AAA and its customer
is the website, but disapprovingly it is not up to the mark. In contrast the website
of Lakme India is quiet interactive, lively and full of relevant information. It offers
tips, advice on ‘makeup’ and ‘skincare’
 Lack of communication with the customers. No newsletter or any other
communication material. From last two months the newsletter link is under
construction.
 Lack of loyalty programmes. AAA is not running any loyalty programme to
honour its existing and loyal customers.

6. RECOMMENDATION
To maintain its position among competition and maximising its ROI on its
promotional mix AAA should consider below mentioned point in its strategy.
 Communication that encourage people to notice, take part in and entertain. As
all other cosmetics brand adverts of AAA are also typical. There is nothing special
in them which can catch the attention and be in their memory.
 Integration of all communication tools (IMC). For example the visuals used in
print advertisement and TV commercials are different. Keeping in mind adverts
get very short span of consumer’s attention and if they are not communicating the
same messages all efforts to create recall and recognition goes in vain.
 Combination of both TM and RM in its marketing strategy. AAA is enjoying a
good market share of its market this the right time to focus on the current customer
and convert them in the loyal customers. This can be done by customer loyalty
program and other by providing other benefits to the customers.
 Well connected and outward customer care department.
 More ‘touch points’ where AAA’s customer can get advice and interact for their
beauty needs. This can be done by in collaboration with any national chain of
beauty salons or by reviving its own beauty training centres.
 Good interactive website with good content. Site should contain answers of
consumer’s beauty related problem, beauty tips, make up tips and with other
material of consumer’s interest which persuade consumer to visit the site again and
again, this will result in consumer loyalty.
 APPENDIX 1

AAA is a trusted brand known throughout India since 1982. The company has a reputation of
introducing new product concepts since its inception. The annual turnover of the company is
INR 50 crore.

POSITION IN THE MARKET

AAA has significant market share in some of niche segment like liquid hand
wash soap segment. It enjoys more than 60% share of INR 20 crore hand wash
market. The other major players in this segment are Dettol and Lifebuoy.
The other market where AAA has significant presence is ‘AAAale hair removing
Cream.’ This ‘Niche’ segment in India was untouched sometime ago and AAA was
enjoying this. But now with the launch of international brand VEET and some more
brands competition is increasing.

BUSINESS DIVISION
AAA has four Business divisions-
1. FMCG
2. Pharmaceuticals
3. Speciality chemicals
4. Exports

FMCG
Aaa Marketing Ltd. (MML) is a subsidiary of AAA Care Pharma. MML is
responsible for marketing and distribution of the entire range of OTC product of
AAA. Products under FMCG can be divided into three main categories.

FMCG
Cosmetics Personal Care Fabric care
 Fairness Bleach  Soft gentle Soap  Bambi Cuff & Collar
Cleaner
 Perfumed Blue Bleach
 Bambi Fabric Softener
 Hair removing Cream & Conditioner

 Oxy Bleach

 Botanica Ultimate

 Clearway

POSITIONING
AAA position itself on the platform of ‘Beauty with Health.’

DISTRIBUTION
 aaa has a very wide coverage through out the nation, which is serviced by the field
force controlled by the Branch Offices. Presently Aaa has five branch offices located at :
1. Delhi – North Zone
2. Mumbai - West Zone
3. Chennai - South Zone
4. Kolkatta - East Zone
5. Bhopal – Central Zone

There are 24 depot/C&F points through out the country. These C&Fs act as the
stocking points for our good and further pass on the stocks to the distributors against billing.
The distributors further sell the good to the Retailer/wholesalers from where it reaches the
actual user.
The team of Sales Promoters service Beauty parlours and saloons directly.

FINANCIALS
For Balance sheet, Profit and loss statement and cash flow statement see the
appendix 2
 BIBLIOGRAPHY
 Brassington, Pettitt (2000) Principles of Marketing, Italy: Prentice Hall

 Christopher, Payne, Balantyne (2002) Relationship Marketing, Creating Stakeholder

Value, Great Britain: Butterworth Heinemann

 Dibb, Simkin, Pride, Ferell (2006) Marketing Concepts and Strategies(5th edition);
USA: Houghton Mifflin

 Fill (2002) Marketing Communication Strategies and applications, Spain: Prentice

Hall

 H.Peck, A.payne, M.christopher, M. Clark, Relationship marketing, butterworth –

Heinemann, 1999

 Hollensen (2002) Marketing Management :A Relationship Approach (2nd edition):

2002:Pearson Higher Education

 http://www.bain.com/bainweb/consulting_expertise/capabilities_detail.asp?
capID=102 , accessed on 25th April 2007

 Lancaster, Massingham, Ashford (2002) Essentials of Marketing, Great Britain:Mc

Graw Hill

 Ursula Hansen, Thorsten Hennig-Thurau (2000) Relationship Marketing: Gaining

Competitive Advantage through Customer Satisfaction and Customer retention,
germany: springer

 Wilson, Gilligan and Colin (1997) Strategic marketing management : planning,

implementation and control, Italy: Butterworth-Heinemann