Learn about the corporate marketing strategies adopted

in India by: 1. Asian Paints 2. Cavinkare 3. Godrej

Consumer Products Ltd 4. Micromax 5. Nirma Chemicals
Limited 6. Tata Motors.
Successful Marketing Strategies
Examples
Marketing Strategy Example # 1. Asian Paints:
The success of Asian Paints is primarily due to its excellent
marketing strategies. The company introduced small packs of paints
and expanded the dealer network, particularly in rural and semi-
urban markets. These initiatives were aimed at meeting the unmet
needs of the customers. The mascot ‘Gattu’ has become very
popular among the customers.
The company studied the urban/rural markets and found out that
huge volumes of ‘Chuna’ (Lime) was used for painting the houses
and walls. Packed distempers, dry distempers and lime wash priced
between Rs.5-Rs.20 were sold in these markets. The consumers, in
general, were not much satisfied with chuna, since it has to be done
every year.

Further, chuna affected the hands, eyes, and even lungs. There are
no choice of colours. Chuna tends to flake off, leaving ugly patches
on the walls. However, some people used distemper for painting the
houses and walls in the place of chuna. The company developed a
special brand of distemper “Utsav” priced at Rs.25.00 per kg.
Utsav was made available in one kg. packing to meet the
requirement of small sized houses. The launch of the product in
each state/region coincided with festivals. Supplies were made to
grocery shops in villages through company dealers.
Demonstrations, use of local newspaper, helped in creating demand
for the product. The product ‘Utsav’ has been accepted as a
replacement for chuna and has been recognised as a successful
marketing strategy in the paint industry.
The company has entered into technical collaboration with US and
Japanese companies for the manufacture of automotive paints to
increase its share in industrial paint segment on the IT front, all the
50 depots are connected to the manufacturing plants and Head
Office for faster flow of information, monitoring supplies and
inventories. Asian Paints is the leader in decorative paint segment
with a market share of about 38 per cent.

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Marketing Strategy Example # 2. Cavinkare:
In 1983, with a single product, CavinKare started out as a small
partnership firm. Chik Shampoo was introduced by the company in
1983. The target audience was lower middle class, semi urban,
monthly household income Rs.1500-3000, females in the age-group
of 16 plus.

Radio was used as mass medium with popular cinema dialogues. To

encourage trials, the sales team contacted school boys to
demonstrate how to lather, wash, and comb hair and show the
difference. Another method used was through a consumer scheme
where anyone could take any four empty shampoo sachets to a
retailer and take home a chik sachet free.
Chik was the first shampoo to be launched in sachet packing priced
50 paise and the strategy revolutionised the shampoo market in our
country. Today, Chik is a Rs.200 crore brand and about 60 per cent
of the Chik sales come from rural markets.
The company now markets ten major brands. Over the years,
CavinKare has achieved a competitive edge with sound
understanding of mass marketing dynamics. The company offers
quality personal care (hair care, skin care, home care) and food
products borne out of a keen understanding of consumer needs and
keeping up company’s values of innovation and customer
satisfaction.
Product Range:

Hair Care- Chik Shampoo, Nyle Herbal Shampoo, Meera Badam

Shampoo, Indica Hair Colorant.
Ethnic Care- Meera Hair Wash Powder, Karthika Hair Wash
Powder; Meera Herbal Hair Oil.
Skin Care- Fairever, Spinz Talc/deodorant, Nyle Cold Cream and
Lotion
A dedicated Research & Development Centre, equipped with latest
equipment and technologies, constantly supports the various
divisions in their endeavour. The Company, which primarily relied
on contract manufacturing for many years, has now set up its own
world-class plant at Haridwar to cater to the demand of both
domestic and international market.

CavinKare Group has crossed a turnover of Rs.890 crores in 2009-

2010. The Company has employee strength of 1,520, an all India
network of 1,300 Stockists catering to about 25 lakh outlets
nationally.

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Marketing Strategy Example # 3. Godrej Consumer
Products Ltd.:
Godrej Consumer Products (GCPL) is a leader among India’s Fast
Moving Consumer Goods (FMCG) companies, with leading
Household and Personal Care Products. Their brands, which
include Good Knight, Cinthol, Godrej No. 1, Expert, Hit, Jet,
Fairglow, Ezee, Protekt, and Snuggy, among others, are household
names across the country.
GPCL is one of the largest marketers of toilet soaps in the country
and are also leaders in hair colours and household insecticides. The
‘Good knight’ brand has been placed at an overall rank of 12 and
continues to be the most trusted household care brand in the
country in Brand Equity’s Most Trusted Brands Survey 2010.
GPCL Product Portfolio:

Soap- Cinthol, Evita, Godrej No. 1, Fair Glow

Toiletries- Cinthol Talc, Godrej No. 1 Talc, Fair Glow cream, Godrej
shaving cream, Cinthol perfumes
Hair care- Godrej hair colour dye, Renew woman hair dye, Nupur
hair dye, Colour soft hair colour
Household care- Godrej Dish wash liquid, Godrej Glossy
Fabric care- Godrej Ezee
Godrej No. 1 Soap:
Godrej No. 1 soap was launched in 1922. This 88-year-old brand
enjoys a volume market share of six per cent. It is the 5th largest
selling soap in the country and tops in Punjab/Haryana with a 20
per cent market share. Godrej No. 1 soap relies on below-the-line
promotions, and for the past seven years it has been selling at a 3 +
1 free offer in the market.
In 88 years, the brand has spent less than what a major soap brand
would spend in a month of heavy promotions (Rs.12-13 crore),
according to the company. Godrej introduced Godrej No. 1 soap
enriched with natural ingredients trusted by millions, the flagship
brand of Godrej Consumer Products Ltd., is now the largest selling
Grade 1 Soap.

Grade 1 is the highest standard laid down by the Bureau of Indian

Standards (BIS). Godrej introduced it in competition with the
Santoor, Breeze. Godrej in the initial stage introduced it as a mid-
segment soap but after sometime its price was reduced and targeted
to the rural area.
(i) Product Strategy:
Godrej No. 1 Soap- Godrej introduced many variants like Sandal,
Jasmine, Ayurvedic, Lavender, etc. to extend the product line of
soap. Each variant is a little different from the others. The variants
are introduced to satisfy the varying needs of the consumers. It also
introduced different product category like talc, shampoo under the
name of Godrej No. 1.
Godrej No. 1 Talc- It is available in two variants- (1) Jasmine, and
(2) Sandal.
Godrej No. 1 Shampoo- Godrej No. 1 launched, for the first time in
India, Aloe-Almond combination in a Shampoo.
(ii) Pricing Differentiation Strategy:

In order to reach out to the masses, it was necessary to develop

smaller SKUs and hence price them accordingly. Godrej No. 1 soap
did just that. Their products came in different sizes and pricing
varied accordingly.
Following are the various pricing schemes for the
different product sizes:
115 gms (Pack of 4) at Rs.50/- 90 gms (Pack of 4) at Rs.40/-
90 gms (Pack of 3) at Rs.30/- 70 gms (Pack of 4) at Rs.30/- and
40 gms singles at Rs.5/-
They use bundle pricing strategy to attract the masses.

(iii) Distribution Strategy:

The company has ambitious plans to extend distribution to smaller
towns and rural markets. The company is setting up a system of
stockists and super stockists in small towns with population of
10,000 plus. At present, rural sales contribute one-third of the
company’s sales with the balance coming from the urban market.
Godrej Soaps’ total income was Rs. 1,300 crores in the fiscal 2009-
2010.
A. Project Sampark:
Project “Sampark,” is a distributor management system used for
stock management, billing to retailers, accounting and report
generation. The objective of implementing Sampark was to reduce
the working capital of distributors. This in turn would give a better
return on investment leading to more coverage and hence more
sales.
It is used by 300 distributors who account for 67 per cent of the
company’s sales. It provided a virtual platform between company
and distributors. Also, comprehensive Business Intelligence enables
in depth primary and secondary sales analysis.
B. Increased Penetration:
Intensified rural approach- presence in all locations with over
10,000 population with 130 Super Stockists, and 2,450 sub-
stockists.
C. Retail Thrust:
i. Focus on availability of all products at all 600,000 outlets; Focus
on modern retailing.
ii. Events- Godrej No. 1 hosts a variety of events which helps it to
connect with the masses.
iii. Godrej No. 1 Sahyadri Navratna Awards- These awards are held
every year. The event for the year 2009 was sponsored by Godrej
No. 1 Lime & Aloe Vera. These awards honour the artists who
contribute to the growth of the Marathi film industry round the
year. Marathi film industry is very close to the masses of
Maharashtra. Thus, through these awards, Godrej No. 1 aims to
develop connect with the rural and semi-urban Maharashtra.
iv. Godrej No.1 Gold Awards- The first ever Television Awards for
Indian Television was sponsored by Godrej No. 1 in 2007. This is an
award show honouring the best in Indian Television, across Hindi
TV channels. The television is said to be the silver screen for the
middle class. Through such awards Godrej No. 1 managed to reach
the middle class household.

v. Yaara Nachle Live- Godrej No. 1 Lavender Soap presented Yaara

Nachle Live at alandhar. Identifying the tastes of entertainment of
Northern India, Godrej No. 1 held this event to popularise itself in
the North.
vi. Advertising- Billboard, Hoarding, Wall painting, Electronic
media, Print media.
vii. Sales promotion
viii. GODREJ Consumer Products Ltd. (GCPL), has roped in Mona
Singh of Jassi Jaissi Koi Nahin (a popular serial on the Sony
channel) to be the brand ambassador for Godrej No.1 soaps.
ix. Godrej No.1 soap was the largest selling brand of Grade I Soap in
the country and Jassi conveyed the importance of using Grade I
quality soaps to the viewers.
x. The new Godrej No. 1 ad takes a typical situation inside any
Indian home. The theme of the campaign revolves around the
proverbial statement, “All that Glitters is not Gold … All soaps are
not Grade I quality soaps”

xi. The campaign educates people about the advantages of using

Grade I quality soaps that produce more lather, last longer and thus
are a great value-for-money proposition. (75 gm bar of Grade III
toilet would last for 28 baths compared to Grade I soap which lasts
much longer).
xii. Godrej Soaps and Jassi both stand for the Sachchi prakritik
sundarta proposition, according to the company.
Marketing Strategy Example # 4. Micromax:
Micromax is one of the leading Indian Telecom Companies with 23
domestic offices across the country and international offices in
Hong Kong, USA, Dubai and now in Nepal. With a futuristic vision
and an exhaustive R&D at its helm, Micromax has successfully
generated innovative technologies that have revolutionised the
telecom consumer space.
In the year 2008, after delivering upon the technology of fixed
wireless-powering desired products, the company forayed into
telecommunication — Mobile handsets. Since then Micromax has
received commendable response for its unique and interesting
handsets.
Micromax has a lot of “firsts” to its credit on their versatile product
portfolio. It was the first to introduce, Handsets with 30 days
battery backup, Handsets with Dual SIM/Dual Standby, Handsets
Switching Networks (GSM-CDMA), Aspirational Keypad Handsets,
Operator Branded 3G Handsets, OMH CDMA Handsets, etc.
One of the major aspects that contribute towards the substantial
monthly growth of Micromax is its 80 per cent sales in the rural
areas. It has a market share of eight per cent, behind Samsung in
second position with 10 per cent market share.
Go-to-Market Strategy:
Micromax concentrated on the rural market first. Micromax
launched its first phone in the rural market with a very unique USP-
30 day’s battery standby time. The first product was a big success —
Micromax XII priced at X 2,150 was lapped up by rural market.
Established Distribution Network-34 super distributors, 450
distributors and around 55,000 retailers.
Micromax managed to make dealers pay in advance by offering
them more margins. It offered higher margins of 15 per cent
margin, which is higher than the industry average of 6-10 per cent.
To increase penetration in the Indian telecom market, Micromax is
bundling with telecom operators such as Aircel.
For better accessibility and prominence in the market, Micromax is
coming up with 150 experience zones (exclusive stores) across the
nation, in addition to ensuring bigger presence at the multi-branded
stores.
They introduced products with comparatively lower prices focusing
mainly on adding particular innovative features. This gave them a
competitive edge over the others and made micromax a primary
choice for the rural consumers.
1. 30-day Battery Phones- April 2008- 2,249; Now- 1,999 The X1i,
Micromax’s first phone, had a battery that could give 17 hours of
talk time and go 30 days on a single charge.
2. Dual-Sim Phones- July 2008- Rs.1,999-2,999 For those who
want two numbers but one handset.
3. Phone-cum-Remote- May 2010- Rs.2,999 A mobile that can
switch TV channels and even change the temperature settings on
AC.
Besides the focus on product development, Micromax has invested
heavily in brand building. The brand is one of the big spenders in
the latest edition of IPL (2011). Micromax has centered much of its
brand building exercise around cricket. The company believes that
cricket promotions will prove to be a great platform to reach out to
the audience and give the brand an opportunity to bond with the
youth.
Micromax has taken up the title sponsorship for the entire Indian
cricketing season from May 2010. Micromax is also planning an
innovative activation across the cricket season, breaking away from
the vanilla branding that we are all used to. Activation will see some
intelligent product placements, on ground-on air integrated product
coverage and mentions, crowd branding and the brand will be
visible on a digital platform on the ground throughout, adding to
the technology stand-point.
Micromax was one of the principal sponsors of the South Africa vs.
India ODI series in 2010. In the just concluded ‘Micromax cup’, as
the name suggests it was the chief sponsor. Micromax, has shelled
out a whopping Rs.100 crore for its brand building initiative. It is
targeting a wide base of new and existing subscribers, using a 360
degree media approach via multiple platforms. It has allotted?
60 crore for ATL (above the line) advertising, of which print will
take the maximum share, followed by TV and radio, another Rs.40
crore will go into the BTL (below-the-line) initiatives. The
communication has been launched in the beginning of 2010.
Marketing Strategy Example # 5. Nirma Chemicals
Limited:
In olden days, the detergent powder category belonged to Lever’s
Surf. Common opinion was a quality detergent, had to be a blue
powder and packed in a colourful carton. But Nirma was launched
as a white coloured product, packed in pouches, sealed at the top,
with no colour or design sophistication on the pack. The product
was priced at around 35 per cent of Surf. Nirma’s market share grew
from 0 per cent in 1976 to about 60 per cent in 1987.
Nirma dared to break the rule that a packaged, especially advertised
brand needed the paraphernalia of branch office, area managers
and sales representatives in order to carry it through wide and
complicated network. Nirma went in for a “no-frills” approach in
production, sales distribution and organisational arrangements.
The title ‘Nirma girl’ going round and round on her feet makes a
strong mnemonic for the brand.
Nirma shattered the myth ‘economy at the cost of quality.’ Nirma
over a period of ten years has become the largest selling brand and
the success of Nirma is due to affordable price, medium quality,
distribution reach and effective use of media.

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Marketing Strategy Example # 6. Tata Motors:
Tata Motors Limited, established in 1945, is India’s largest
automobile company, with consolidated revenues of Rs.92,519
crores in 2009-10. It is the leader in commercial vehicles in each
segment, and among the top three in passenger vehicles with
winning products in the compact, mid-size car and utility vehicle
segments. The company is the world’s fourth largest truck
manufacturer, and the world’s second largest bus manufacturer.
The company’s 24,000 employees are guided by the vision to be
“best in the manner in which we operate, best in the products we
deliver, and best in our value system and ethics.”
They have a wide product range including passenger cars like
Indica, Indigo, Nano, Fiat; Utility Vehicles like Aria, Sumo, Safari,
Xenon; trucks in the form of medium & heavy, small and light
commercial vehicles as well as commercial passenger vehicles like
buses and defence vehicles.
Tata Motors commercial vehicles are known for their reliability and
durability. Seven out of every 10 trucks on Indian roads proudly
carry the Tata logo.
Tata Motors had consciously decided to focus on being a customer-
centric company rather than a product-centric one, developing
products that fit customer requirements rather than making
customers adjust their requirements to suit existing vehicles.
With this intention, in 2002, the company remodelled their Tata
mobile in response to customer feedback asking for an economical
and reliable vehicle for intra-city and local transport, and the 207
CM was born — a sturdier vehicle that drives well on dirt tracks, has
a higher operating speed and more applications. Changing customer
attitudes are driving the market today. Issues like reliability and low
maintenance costs are now basic requirements, not product
differentiators.
Who is the Customer?
With the help of McKinsey, the company classified its customers
into a four-level pyramid. At the bottom was the acquisition-price-
sensitive customer, who is looking only at price, not performance.
Above that is the return-on-investment customer, who is willing to
pay price for better value. The third layer is the looking-for-a-
balance customer, who weighs both price and performance.
At the top is the only-performance customer, who is willing to pay a
higher price for it. The rural customer is not too aware of features
and benefits, and is found more at the lowest end of the pyramid,
while the educated urban customer lies at the second level. In both
urban and rural India, there will be customers in all the four
segments, in varying percentages.
Through its interaction with customers, the company learnt that the
five essential attributes they look for in a small commercial vehicle
are lower operating costs (as compared to a three-wheeler),
reliability, durability, safety and comfort, and — most important of
all — a viable business proposition.
Commercial vehicles are actually a business investment. If a
customer is not able to earn the money to be able to pay back the
acquisition price and earn some profit, he is not going to buy the
vehicle.
Ace — The Baby Elephant:
The company realised that the entry level for the semi-urban and
rural market was a product between a three-wheeler and a pick-up
truck, at a price-sensitive level. It put together a team to develop
such a vehicle, and it came up with an Ace. A sturdy vehicle that can
carry loads up to 1.5 tonnes over distances up to 300 km, the Ace is
a four-wheeler at a price slightly higher than a three-wheeler, but
offering greater stability, safety and comfort.
More important, the operating cost was extended to a product life-
cycle cost, which covered purchase cost, operating cost and resale
price. “It has the lowest product lifecycle cost; that is our USP. It is
essentially a last-mile load carrying vehicle, useful in congested
cities as well,” says Mani.
The brand communication for the Ace was ‘All the goodness of the
Tata Truck now in a mini size’ — thereby the description of the
category as a mini-truck. Using the metaphor of an elephant (a
mother elephant representing the Tata truck), the Ace was simply
called the baby elephant!” They positioned the Ace as “Chotta
Haathi” through rural advertising.
Vehicle Finance:
The low-price-high-performance Ace has cast its spell on auto
financers in urban areas, who now offer five-year financing for the
vehicle (three-wheelers get only two/three-year financing), so that
customers pay a monthly instalment approximately the same as hat
for a three-wheeler. “The instalment payment has gone down and
income has increased, boosting net earnings. The customer is happy
and our sales have jumped. It’s a win-win situation.”
Cityride:
Tata Motors has also developed the Cityride bus, a low-end, 16-
seater bus built on the existing 407 platform for passenger
movement between small towns. As-markets continue to move
towards semi-urban and rural areas, the company is extending its
reach through a unique concept called 1S outlets, that handle only
sales.
At over 300 such outlets across India, customers can see and buy
the product within 50 to 100 km of their village. Apart from its
dealers, Tata Motors has tied up with local garages for servicing,
and enhanced their service skills through training.
Indica/Nano:
Till 1980’s, the Indian customer had limited choice of cars as he had
to choose between the Ambassador, the Fiat or the Standard. The
customer had to make advance payment and wait in queue for a few
months to take delivery of the car. The gap between demand and
supply was very wide and therefore, there was least focus on
customer orientation and customer service.
In mid-1980’s the Government took a decision to issue licences to
manufacturers to produce passenger cars and this initiative started
a revolution in the market. Maruti Udyog introduced Maruti 800 a
modern car with fuel efficiency and the company became a leader in
the passenger vehicle market.
Following liberalisation in 1990’s, many international car
manufacturers i.e., Daewoo, GM, Ford, Fiat, Toyota, Daimler-
Chrysler, Hyundai entered the car market introducing a wide range
of models varying from functional models (Matiz) to classic
premium (Mercedes Benz). The Ambassadors and the Fiats entered
the decline stage as they were not able to stand in the market.
Among the Indian companies, Telco had developed expertise in
manufacturing trucks and they were enjoying a near monopoly
position in buses and trucks market. Telco with their experience in
manufacturing and marketing, entered the car market successfully.
It has introduced own models like Tata Sumo, Tata Sierra, Tata
Estate and has a joint venture with Benz, to manufacture/market
Mercedes Benz cars in India.
After extensive studies, they were able to design a truly Indian car
i.e. Indica for Indian market. Over a period of time, Indica has been
accepted by functional buyers both in cities and in semi-urban
markets. The company has also introduced Indigo in the lower
premium car segment. While Indica competes with Zen, Santro and
Wagon R, Indigo is positioned against Esteem and Hyundai Accent.
Telco set up an Engineering Research Centre in Pune with a view to
design a small car to meet the requirements of emerging middle
class population who wants to move from two- wheelers to four-
wheelers. The small car (The Rs.1 lakh car as it is known) is priced
between two wheelers and Maruti 800.
Regarding Models, there will be three trim levels (rudimentary,
middle and high) and buyers would be able to upgrade from one
level to another. It has rear engine (800 cc) and will meet all
emission and safety norms. The small car is available in the market
from 2010.

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