15 Fourth Chapter

A Study of Branding Strategies of Indian Brand In Personal
Care FMCG with special Reference to Maharashtra.
2015
Chapter No: 04 Conceptual Frame works

of Indian & Multinational Brand FMCG
Personal Care Strategies.
4.01 Introduction:
4.02 Branding Strategies in India:
Branding strategies.
Company name.
Individual Branding.
Attitude Branding and Iconic Brands.
"No-brand" Branding.
Derived Brands.
Brand Extension and Brand Dilution.
Multi-brands Strategy.
Private labels.
Crowd Sourcing Branding.
Nation Branding.
4.03 FMCG sector In India and Indian Branding Strategies of
FMCG Personal Care Products:
Consumer Products
The Indian care Market.
The Indian Soap Industry.
Indian Shampoo Market.
Trapping the Rural Market.
Competitive Product Strategies for rural Markets.
Chapter No: 0 4 Conceptual Framework of Indian and Multinational brand FMCG in

personal care Strategies.
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4.04 Multinational Branding Strategies of FMCG Personal Care

Products:
4.05 Brand Equity Perception:
4.06Akaer Equity Frame Work:
4.07 Review of District to be studied:
Parbhani:
Jalna:
Nashik:
Ahmednagar:
Aurangabad:
4.08 Reference:

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4.01 Introduction:
The FMCG Sector is growing due to liberal policy of Government
towards this sector. The Foreign Direct Policy encourages the Investment
in this sector. The low entry barrier in this sector also increases the scope
of Investment for the exploitation of Indian urban and rural market which
is unorganized in personal care FMCG. To sustain in Indian market it is
necessary to understand the branding strategies both for Indian as well as
Multinational and here the researcher tries to reveal in details about
branding strategies.
4.02 Branding strategies In India:

Branding strategies:
A branding strategy helps establish a product within the market and
to build a brand that will grow and mature in a saturated marketplace.
Making smart branding decisions up front is crucial since a company may
have to live with the decision for a long time. The following are
commonly used branding strategies:
Company name:
In this case a strong brand name (or company name) is made the
FMCG for a range of products (for example, Marico) or a range of
subsidiary brands (Nirma or Godrej in India).
Individual Branding:
Each brand has a separate name, putting it into a de facto
competition against other brands from the same company (for example,
Kool-Aid and Tang are both owned by Kraft Foods). Individual brand
names naturally allow greater flexibility by permitting a variety of
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different products, of differing quality to be sold without confusing the

consumer's
perception of what business the company is in or diluting
higher quality products.
Attitude Branding and Iconic Brands:

This is the choice to represent a larger feeling, which is not
necessarily connected with the product or consumption of the product at
all. Companies that use attitude branding include: HUL, P &G, and
Marico. Iconic brands are defined as having aspects that contribute to the
consumer's self-expression and personal identity. Brands whose value to
consumers comes primarily from having identity value are said to be
"identity brands. Some brands have such a strong identity that they
become "iconic brands" such as Lux, Nirma.
"No-brand" Branding:
Recently a number of companies have successfully pursued "nobrand" strategies by creating packaging that imitates generic brand
simplicity. "No brand" branding may be construed as a type of branding
as the product is made conspicuous through the absence of a brand name.
"-----?
Derived Brands:
Some suppliers of key components may wish to guarantee its own
position by promoting that component as a brand in its own right. For
example, Intel, positions itself in the PC market with the slogan (and
sticker) "Intel Inside.

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Brand Extension and Brand Dilution:

The existing strong brand name can be used as a vehicle for new or
modified products. For example, many fashion and designer companies
extended brands into fragrances, shoes and accessories, furniture, and
hotels. Frequently, the product is no different than what is already on the
market, except it has a brand name marking. The risk of over-extension is
brand dilution, which is when the brand loses its brand associations with
a market segment, product area, or quality, price, or cachet.
Multi-brands Strategy:
Alternatively, in a very saturated market, a supplier can
deliberately launch totally new brands in apparent competition with its
own
existing
strong
brand
(and often
with identical
product
characteristics) to soak up some of the share of the market. The rationale

is that having 3 out of 12 brands in such a market will give a greater
overall share than having 1 out of 10. Procter & Gamble is a leading
exponent of this philosophy, running as many as ten detergent brands in
the US market. Cannibalization is a particular problem of a multi-brands
strategy approach, in which the new brand takes business away from an
established one which the organization also owns. This may be
acceptable (indeed to be expected) if there is a net gain overall.
Private labels:
Also called own brands, or store brands, these have become
increasingly popular. Where the retailer has a particularly strong identity
this "own brand" may be able to compete against even the strongest brand
leaders, and may outperform those products that are not otherwise
strongly branded. Individual and organizational brands .These are types
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of branding that treat individuals and organizations as the products to be

branded. Personal branding treats persons and their careers as brands.
Faith branding treats religious figures and organizations as brands.
Crowd sourcing Branding:

These are brands that are created by the people for the business,
which is opposite to the traditional method where the business creates a
brand. This type of method minimizes the risk of brand failure, since the
people that might reject the brand in the traditional method are the ones
who are participating in the branding process.
Nation Branding:
This is a field of theory and practice which aims to measure build, and
manage the reputation of countries (closely related to place branding).
4.03 FMCG sector In India and

FMCG
Indian Branding strategies of
personal care products:
The Indian FMCG sector is the fourth largest in the economy and
has a market size of US $13.1 billion. Most of the product categories like
jams toothpaste, skincare, shampoos etc .In India low per capita
consumption as well as low penetration level, but the potential for growth
are huge.1
The personal care category has the largest number of brands, i.e 21
inclusive of Lux, Lifebuoy, Fair & lovely, and ponds. There are 11 HUL
brands in the 21 aggregating Rs 3,799 Crore or 54 percent of the personal
care category. In the shampoo category, HUL clinic and sunsilk is at the
top 100, Clinic nearly doubles the size of Sunsilk.
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Dabur is among the top five FMCG companies in India and is an

herbal specialist with a turnover of Rs 19 Billion in 2005 -06. Dabur has
brands like Dabur Amla, Dabur Chywanprash, Vatika, Hajmola, and
real. Marico is a leading Indian group in consumer products and services
in global Beauty and wellness space.
* The Indian hair care market generated total revenues of $ 1.4 billion in
2009 representing compound annual growth rate (CAGR) of 15.4 percent
for the period spanning 2005-09.
*The soap and detergent industry covers laundry and toilet soaps and
synthetic detergents in the form of liquids, powders and bars. These are
consumer products and their quality, price, marketing and distribution
network determines the success of the units is the sector. The
manufacture of detergents and toilet soaps has been deli-censed.
* The Indian personal care market is estimated to be worth US $ 4 Billion
(approx Rs20, 000 Crore) This includes Bath and shower products, Hair
care, skin care, cosmetics, Fragrances and Deodorants. Bars soap has
growth of 5 percent per annum over last 5 Years. Indias GDP unlike that
of other emerging developing countries has a bigger consumer percentage
than investment. This is because India economic model has not followed
the traditional export growth model of the other countries in Asia like
china. This makes India more resilient to external shocks like the Lehman
crisis and provides a more domestic orientation to growth. India has a
competitive consumer goods market with a number of domestic and
International companies competing in multiple markets and segments.
FMCG Companies have been expanding rapidly in the Indian market and
are set to grow to the next level as Indias middle class grows bigger and
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bigger and the existing middle class becomes richer. Indias FMCG
stocks from a great defensive investment class. They not only have
defensive characteristics but also growth as well. Indias FMCG sector
is expected to grow by more than 100 percent in the next 5-6 Years as
more and more consumers move from unorganized part to the Industry to
the organized industry. Though competition has been fierce in Indias
Non Discretionary consumer goods Industry with the P &G and unilever
price war in the detergent segment, the industry has seen it share of
winners with Nestle. These stocks trade at high multiples justified with
their very high returns, strong brands and low investment requirements.
ITC Ltd with a market capitalization of Rs 137,000 Crore, ITC is

one of Indias foremost private sector companies, and growing in
personal care too.
HUL-is Indias largest FMCG Company with categorized business

like soaps, detergents, shampoos, skincare, toothpastes, deodorants,
cosmetics, Tea, coffee, packed foods, ice cream and water purifiers. With
a market capitalization of Rs 61,000 crores, the company is a part of the
everyday life of millions of consumers across India .The company earned
revenue of Rs 5000 crores with a net profit margin 12 percent. Its parent
company Unilever, which holds about 52 percent of the equity . Its
portfolio includes leading households brands such as Lux, Lifebuoy, Surf
Excel, Rin, Wheel, Fair& lovely, Ponds Vaseline,Lakme, Dove, Clinic
Plus
sunsilk,Pepsodent,Closeup,Axe,Brooke
Bond,Bru,Knorr,Kissan,
Kwality walls and pure it.

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Dabur India- Dabur India Ltd is the fourth largest FMCG Company
in India with market capitalization of Rs 16,000 crores. Dabur operates in
key consumer products categories like Hair Care, Oral Care, Skin Care,
Home care, & Foods. For the past 125 years, the company has been
dedicated to providing nature based solutions for healthy and holistic
boundaries. Dabur specializes in Ayurvedic products JanamGhutti &
gripe water. Hajmola, Glucose D & Pudinhara. It earned revenue of Rs
900 Crore & a profit margin of 14 percent Dec 10.
Colgate Palmolive (India ) Ltd- with Rs 11,000 crores as the

market capitalization & Rs 500 Crore revenues with a net margin of 11
percent in December 2010. Colgate Palmolive Ltd is a truly global
company serving Hundreds of millions of consumers worldwide. Started
as a small soap & candle company, the company is now 200 years old.
Colgate is well known for it. It has also diversified its business into
personal care & home care, Professional care trusted by dentist across the
country.
Godrej Consumer Products Ltd- Rs 350 Crore 18 percent is a

leader among Indias FMCG companies, with leading Household and
Personal care products. The major brands are GOOD knight, Cinthol,
Godrej No 1, Expert, Hit, Jet, are household names across the country,
with Rs 11,000 crores as the market capitalization, the company is largest
marketers of toilet soaps in the country and is also leaders in hair colors
and household insecticides. It owns International brands and trademark in
Europe, Australia, Canada, Africa, and the Middle East. Godrej has also
recently acquire Tura ,a leading medicated brand in west Africa.Megasari
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Group, a leading household care company in Indonesia and Issue Grou,

Argencos, two leading hair colorant companies in Argentina.
MaricoLtd - Marico is a leading Indian Group in consumer

Products and services in the global beauty and wellness space. Marico
products and services in hair care, skin care, and healthy foods generated
a turnover of about Rs 26.6 billion during 2009-10. The company has a
market capitalization of Rs 8,000 crores.Marico market well known
brands such has parachute, Suffola, Sweekar, Hair & care , Nihar, shanty
, Medicare, Revive,Manjal,Kaya, Aromatic, Black Chic.Maricos Brands
and their extensions occupy Leadership positions with significant market
shares in most categories- coconut oil, Hair oils,Post wash hair care, Antilice Treatment ,Etc.
Marico is also present in the Skin care solution segment through

Kaya skin clinics in India, Middle East and Bangladesh
Consumer Products:
Soaps:
The product categories can be classified into three segments;
premium (Lux,Dove ), popular (Nirma, Cinthol), and economy (Nirma
Bath,Lifebuoy). The price differential between the premium and economy
segments is about 2X. The popular and economy segments accounts for
about 4/5ths of the entire market for soaps. Penetration of toilet soaps is
high at 88.6 percent. However per capita consumption levels remain low
Indias per capita consumption of soap at 460 gm per annum is lower
than that of Brazil at 1,100 gm.
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Distribution Network:
Soaps are available in percent million retail outlets in India, 3.75
Million of which are in the rural areas. Therefore availability of these
products is not a problem. 75 percent of Indias population is in the rural
areas; hence about 50 percent off the soaps are sold in the rural markets.
Growth:
Rural demand growth is expected to occur mainly with consumers
moving up towards premium products. But in the past, the proportion of
premium soaps to economy soaps has not changed much, in volume
terms. This is because as some consumers move up the value chain with
increase is disposable incomes, some consumers move down looking for
cheaper substitutes as price moves up. This has been the case especially,
as growth in soap prices has generally outpaced overall consumer
inflation 2
Personal care products:

The annual value of personal products business in India, Including
oral care, hair cares and skin cares products, is currently estimated to be
Rs 54.6 bn. The rising income levels have led to rising aspirations on the
part on Indian Consumers. These factors have been the catalysts in the
exponential growth rate in the personal product category over the past
five years.
Personal care products are divided into 6 Categories

1. Hair care- Oils.
2. Hair care Shampoos.
3. Skin Care.
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4. Cosmetics.
5. Feminine Hygiene.
6. Hair Care Oils.
The market is huge valued to be 6 billion. Due to the varied
consumption habits of consumers across the country, where coconut oil
and edible are interchangeably used, the size of the market is growing at
an impressive 6 -7 percent in volume terms despite the high penetration
level Usage of Hair oil is a typical Indian traditional habit. It is perceived
to offer benefits of nourishment, hair strengthening, faster and better
growth, and reduce the problem of falling hair. There are two types hair
oil available in the market; Coconut oil and non greasy perfumed oil.
Coconut oil comprises 2/3 rd of the total market and the balance
comprises the non greasy perfumed oil.
Usage of hair oil is an everyday habit with 50 percent of the

population out of which some perceive that massaging the head with hair
oil has a cooling impact. The penetration of hair oil is fairly high at
around 87 percent and evenly distributed among the urban and rural
areas.
Hair care Shampoos:

The shampoo market in India is valued at Rs 4.5 billion with the
penetration level at 13 percent only. The market is expected to increase
due to lower duties and aggressive marketing by players shampoo is also
available in a sachet, which is affordable and makes up to 40 percent of
the total shampoo sale. The Indian market is characterized by a twin
benefit platform: cosmetic and anti-dandruff. It is basically an upper
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middle class product, as more than 50 percent of the consumer use

ordinary toilet soap for washing hair.
While the awareness level is high, the penetration level is very low
even in the metros which are only 30 percent. Urban markets account for
80 percent of the total shampoo market. The penetration level is rapidly
increasing due to decline in excise duty, which was 120 percent in 1993
to 30 percent currently.
Skin care:
The skin care market is at a very nascent stage with basic
requirements of the consumers being protecting the skin from cold and
dryness in winter, and improving fairness of the skin. Most of the product
categories are niche segments. While the awareness rate is high in both
urban areas accounting for 60 percent and rural areas accounting for 30
percent the penetration level is low for both. This is because of
apprehensions that usage of skin care products may benefit in the long
run due to chemical contents. Many households prefer to use traditional
and natural homemade product. Since the market is at a very nascent
stage with very low penetration levels, the growth rates are expected to be
higher at 24-255 over the next five years. New players such as Avon and
Oriflamme have entered the market with the natural ingredient benefit
platform, which could further spur Growth.
The Indian Cosmetic Industry is defined as Skin care, Hair care ,

Color Cosmetics ,Fragrances and oral care segment which is growing by
7 percent according to analysis of sector. The emphasis of the herbal
cosmetic has been on the spectacular growth of the herbal and Ayurvedic
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beauty product business as conveyed by beauty expert Shahnaz Husain

who was the first to Introduce the concept of Auryvedic cosmetics to the
world in 1970.The Indian Cosmetics industry has emerged as one of the
unique industry holding huge potential for further growth. In 2009 it
registered sales of INR 356.6 billion despite the global economic
recession. Indian cosmetic Industry has mainly been driven by improved
purchasing power and rising fashion consciousness of the Indian
population and Industry players spending readily on the promotional
activities to increase consumers awareness and to develop their products.
The Indian cosmetics market which traditionally strong hold of a

few major Indian Players like Lakme, and Ponds has been a lot off
foreign entrants to the market within the last decade. India is a very price
sensitive market and the cosmetics and personal care product companies,
especially the new entrants have had to work out new Innovative
strategies to suit Indian preferences and the budgets to establish a hold on
the market and established niche market for them.
According to analysis and figures given by the confederation of

Indian industries( CII) ,the total Indian beauty and cosmetic market size
currently at Us $ 959 million and showing growth between 15-20 percent
per annum. The overall beauty and wellness market that includes beauty
services stands at about us $ 2680 million according to CII estimates. The
size of Indian cosmetics Industry globally is $ 274 billion, while that of
Indian cosmetic Industry is $ 4.6 billion. The current size of Indian
cosmetic Industry is approximate US $ 600 million. Among these fastest
growing segment is color cosmetics, accounting for around US $ 60
million of the market. Industry sources estimate a rapid growth of 20
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percent per annum across different segments of the cosmetics industry

reflecting with an increasing demand for all kinds of beauty and personal
care product. Growth in the Indian cosmetic industry has come mainly
from the low and medium priced categorized that account for 90 percent
of the cosmetic market in terms of volume. Costs for importing other
products are much higher than producing it in the country. India usually
allows the entry of imported cosmetics without any restrictions but the
average Import tariff on cosmetics product is currently very high at 39.2
percent.
The Indian hair care market:

It is mainly dominated by the hair oil segment, which constitutes
over half of the overall market. Perfumed oil (Cooling oils, light oils, and
heavy amla Oils) and coconut oil comprises the main segment of hair oil
market while others account for minimum share in the market.
Consumption pattern of hair oil differs across different regions of the
country. Coconut oil is very popular in southern regions, while people in
the north prefer others such as Sesame, rapeseed, etc. Although the
market is convent ally dominated by the womens segment, Men are fast
emerging as a separate consumer category. In the current scenario , the
market is witnessing a tremendous change in buying pattern of the mens
segment, as growing young generation are looking for care and styling
products catering to their specific needs. Consequently, industry players
are also introducing various products to meet the growing Male buyers
demand.

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Hair Oils:
The hair oil market is valued at 6 billion. Hair Oiling is a major
niche in the hair care segment. Unlike market abroad, India has a large
number of consumers whose hair care expenditure also includes hair oil.
The penetration level of hair oil is around 87 percent. Around 50 percent
of the population uses hair oil every day. The growth rate of hair oils in
rural India is faster than the growth rate in urban India.
Hair gels:
Hair gel markets segment is at a primary stage and not many local
brands are available in India. Hair gels or creams are mainly used for Hair
grooming by men and is used as a fashion accessories. The market
penetration of hair gels or creams is very low, and is limited to a small
section of urban market.
The Indian Soap Industry

It includes about more than 700 companies with combined annual
revenue of $ 17 billion. Major companies in the Industry include P & G.
Unilever. The Indian soap industry is highly concentrated with the top 50
companies holding almost 90 percent of the market .The market size of
the global soap and detergent market size was estimated to be around 31
M tone in 2004, which is estimate to grow to 120 m tone in coming years.
Toilet soaps account for more than 10percent of the total market of soap
and detergents. In Asia, the countries like china and India are showing
rapid growth in the toilet soap section. Market share of body was
estimated to be around 2 percent in 2004 and showing signs of healthy
growth in this market. Indians soap market is Rs 41.75 billion.
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Indian Soap Industry volume is Rs 4800 Crore. For purpose of

gaining a competitive edge, Indian companies are now relaunching their
brands with value- additions to woo consumers across India .For instance,
Hindustan Level Ltd. (HUL) has recently launched a host of toilet soap
brands which include Lifebuoy, Lux Breeze and Liril- with value
additions. Also is in the process of rolling out Ayush Ayurvedic soap.
These are to meet the evolving need of customers. One of the factors
which affect the demand of soaps is the penetration, which the products
have in market. In case of soaps this has not been a major issue as the
penetration in the rural area is as high as 97 percent for overall India. In
terms of market share for Indian soap. Industry the data indicates that
HUL had a market share of 64 percent in the soap market, followed by
Nirma at 16.8 percent and Godrej at 4.4 percent. Nirma in northern share
21 percent. The largest contributors HUL and enjoys 2/3 rd share. Lux
and Lifebuoy have held the sway of the market for almost fifty years.
Some of top leading companies soap,

In the Rs 4,800-crore Indian toilet soap, market, the lead players
include:
*HUL.
*Godrej Consumer Products Ltd.
*Wipro Consumer Care.
Personal Wash (Soaps): The personal wash can be segregated into*Premium- Lux, Dove.
*Economy- Nirma Bath, Lifebuoy
*Popular- Nirma, Cinthol

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The price of the premium segment product is twice that of

economy segment products. The economy and popular segments are
4/5ths of the entire soaps market. The penetration level of toilet soap is
88.6 percent .The toilet soaps market is estimated at 530,000.TPA
including small imports where the brands and a large number of small
brands. The popular brands include Lifebuoy, Lux, Cinthol
Liril,
Rexona, and Nirma. Premium soaps are estimated to have a market value
it is as much as 30 percent .The Indian Soaps Industry includes about 700
companies with combined annual revenue of about $17 billion. 70
percent of Indians population resides in the rural areas and around 50
percent of the soaps are sold in the rural markets. The market is littered
over with several, leading national and global brands and a large number
of small brands, which have limited markets. The popular and premium
brands include Lifebuoy, Lux, Cinthol, Liril, Rexona and Nirma. Toilet
soaps, despite their divergent brands are not well differentiated by the
consumers. It is, therefore, not clear if it is the brand loyalty or
experimentation lured by high volume media campaign, which sustain
them. A consequence is that the market is fragmented. It is obvious that
this must lead to a highly competitive market. Toilet soap, once only an
urban phenomenon, has now penetrated practically all areas including
remote areas. The incremental demand flows from population increases
and rise in usage norms impacted as it is by a greater concern for hygiene.
Increased sales revenues would also expand from up graduation of quality
or per unit value. As the market is constituted now, it can be divided into
four segments: Premium, popular, Discount and Economy soaps.
Premium soaps are estimated to have a market volume of about 80,000
tones. This translates into a share of about 14 to 15 percent. However, by
value it is as much as 30 percent.
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Indian shampoo market

At
a time when most FMCG
categories are inching, along
personal product shampoos is a high priority area for major players such
as Hindustan Lever, The current size of the shampoo is in Crores .
Unlike other FMCG categories such as soaps and detergents, which boast
of a penetration level of more than 90 percent , shampoo remain a low
penetration category. Industry estimate that the urban market penetration
of shampoos is a modest 36 percent .The major players in hair shampoo
category are HUL, Marico, and Dabur India.
The Shampoo market is divided into two
1) Cosmetic.
2) Anti- dandruff.
For a market with high potential, the shampoo market in India is

dominated by just a few players. From scores of brands five years ago the
shampoo market has now been whittled down to handful. HUL with 65
percent volume share dominates the market with brands such as Sunsilk,
Clinic plus and clinic all clear, Cavin Kare Ltd., with brands such as
Chik and Nyle follows with a 19.8 percent volume share .3
P & G is the only large player in this category with brands such as
Pantene Pro V and Head & shoulders & G discontinued it shampoo
operation of manufacturing from 2000.HUL s long established ties with
retailers and its extensive distribution reach probably acts as an entry
barrier for new entrants. Cavin Care Ltd business of shampoo has grown
faster than the overall market .The market had a set back up almost to ten
months between Jan to Nov 2000 Due to
perception that shampoos

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contain harsh chemicals that could damage hair, high price and the view
that the shampoo is more of a glamour product rather than Hygiene.
Therefore the marketers adopted the strategies to lower the price by

making experiments on low packing over a decade. Almost to the tune of
50 paise sachet by Chik shampoo. Which helps the brand to expand to
40percent? While HUL acknowledge on Innovation and introduce lux
shampoo 50 paise version.
Which restrict margin expansion for the players? Marketers have

tried to add a utility value to shampoos by offering functional benefits.
Anti- dandruff shampoo represents this attempt. Clinic plus, one of the
first Anti dandruff brands, is the largest shampoo brand today, with a
market share of 31 percent HUL experimented with different versions of
sunsilk for dry, normal, and oily hair. P & G head & shoulders Menthol
and pentene lively clean also offer functional benefits to users. Since
these add-ons enable brands to command a price premium over the plain
shampoos, this strategy could aid both volume and margin expansion.
An herbal shampoo was launched by Cavin care have been some of

the early entrants in the Indian herbal shampoos market. This product
claim to use traditional Indian herbs such as Shikakai, soap nuts, amla as
ingredients and have been success.
Nyle harbor which accounts 10
percent volume share. Due to high price herbal shampoos 90 percent is

sell in urban only while synthetic still rule over rural area. Meanwhile
Dabur also introduced Vatika Herbal shampoo with low price. Godrej
launched with hair color Godrej color glosses shampoo, for users with
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colored hair. Then thereafter many local as well as multinational brands

started producing Ant-dandruff shampoos.
We still see that HUL turnover penetrated to rural market through

scheme as NREGA( National Rural Employment Guarantee act) rural
consumers are upgrading to aspirational products like face wash , Hand
wash etc
Statistics reveal that while the number of rural consumer earning

about a Rs 60 a day would come down to 250 Million from 400 million
by 2020. The number of consumers earning Rs 250 a day would have
captured from 50 Million to 250 Million. These represent a huge
opportunity for marketers to increase their rural presence. According to
report of Nielsens Jan/Feb 2011 HUL market share in shampoo segment
declined by 1.3 percent points to 47.3 percent while P & G gained 2.4
percent with a market share of 17.7 percent. Dabour on the other hand
gain 0.8 percent capturing 6.7 percent in the estimated Rs 3000 Cr in
2011 and Rs 5000 Crore till 2014.The heavily spend on advertising to
remove the perception on Indian Minds regarding using of shampoo in
last one year of 2011 and 2012.
We see that HUL spent around Rs 2140 Crore on Advertising and

other promotional campaign,4 it was much more than its net profit of Rs
1,736.83 Crore for the same period.
We see that Lux and Lifebuoy have held the sway of the market
for almost fifty years. While the former brand remained the preserve of
the high end rich customers, Lifebuoy ruled the roost with health
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conscious users as a hygienic soap. While pears has dominated as high

profile specialty soap, HUL has traditionally focused on rural market
where around 700 million people or 70 percent of Indias population live
in more than 7,00,000 villages with a population less than 1500. So as to
service rural market HUL It tries with 3As (Availability, Awareness, and
Attitude)
Extending availability:
Data on rural consumer buying behavior indicates that the rural
retailer influences 35 percent of purchase occasions therefore sheer
product availability can determine brand choice, volumes and market
share. Project streamline conducted by HULs into Maharashtra.
Influencing affordability:
The project streamline focused on extending distribution. It was
restricted to raising penetration and awareness levels to village having
less than 2000 population. The model triples physicals reach, double
communication reach, creates a platform for influencing attitude changes
and raising Incomes.
HUL is tying up with Non-Governmental organizations, United

Nations Development program and voluntary organizations to propagate
health and hygiene message. Which creates a channel to raise awareness
of its brands and catalyze affluence in rural India?
Enhancing awareness:
HUL has been utilizing events such as fairs and festivals etc. as
occasions for brand communication. Cinema vans shop fronts, walls and
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wells are other media vehicles that we have utilized to heighten brand and
pack visibility. We see that consumption is negligible as compared to
urban population say 10:1. The distribution was supported by explanation
of product usage and a video show, which was interspersed with product
communication. Thus we see awareness is generated of its product
categories and the availability of affordable pack. Consumers were also
made aware of the superior benefits of using our product vis- a Vis their
current habits and the affordable packs sizes on offer. The project thus
successfully addressed issues of awareness, attitude and habits.
Nirma:
Nirma success is based on the premise of consistent and effective
delivery of value for money equation to our customers. These benefits
along with betterment in the areas of distribution, packaging, advertising
will ensure steady growth for Nirma in future. Nirmas low cost strategy
appears to have become a fashionable mantra, even among large Indian
group. Nirma pioneered a lower cost manufacturing method. Which is
helpful where consumers are price conscious? And due to these its
giving multinational run for their money. Nirma invested Rs 3.8 billion in
a plant that makes linear alkyl benzene, a key ingredient for Nirma
detergent. Nirma is setting up another plant to produce a second
ingredients used in making his cleaning product: soda ash. The Rs 10
billion factory will make 420,000 tones of soda ash each year, iodized
salt, another commercial commodity, is a byproduct.
Godrej soaps:
Godrej is currently the number three player, volume wise in the
industry. Cinthol its flagship brand has recorded since the past few years
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decline in its sales. This has led to high sale in terms of value of 24
percent by competing vigorously in the marketplace. A correction in the
prices of inputs resulted in better margins in the soaps business as
compared to the previous year. Godrej has come out with a number of
innovative consumer and trade offers.
The highlight was the launch of Fair glow which is the first
innovative break through soap offering in the Indian market for many
years. The product meets a stated need of the consumer at no extra cost or
effort and has met with universal acceptance by the trade and consumers.
Sandal and natural variants of no.1 soap launched keeping with the rising
popularity of natural variants in the soap industry. Renewed focus on
institutional sales and sales to Canteen, Stores, and Department led to
growth in sales value in this segment.
Godrej has the distinction of being the first company in the world
to develop technology to make soap with vegetable oils, way back in
1930. It is also manufacturing for other players in the industry. Contract
manufacturing of toilet soaps registered a 20 percent volume growth but
grew by only 7 percent in value terms to Rs 618 million. Godrej makes
Rexona and Dettol for Reckitt & Colman of India and Johnsons baby
soap for Hindustan Lever. And yet only half of its capacity of 70,000
tones is being used.
Youth power is becoming increasingly evident in villages. Rural

youth bring brand knowledge to the households. This has forced several
companies to change the focus and positioning of their products and
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services towards this segment that is growing in absolute number and

relative influence.
Trapping the rural market:

Many companies having marketing expertise are focusing on rural
markets as there are opportunities to market brands, various different
products and services as rural markets are lucrative than urban areas.
Rural markets are growing faster and form the target group for various
consumer goods.
1. Intensive competition in urban markets has resulted in increase in

costs but not high market share and profits.
2. Traditionally farmers have treated agriculture as a way of living and
they produce just enough quantities to meet
their family
requirements. Many progressive farmers have increased the yields of

crops by following modern agricultural practices.
3. Increase in rural income and saving has led to green house cultivation
of flowers and vegetables, mushroom cultivation, development of
industries such as cotton ginning and spinning mills, paddy
processing units etc.
4. With a very large consumer base rural markets have tremendous
potential.
5. The rural markets are highly scattered over a wide geographical area
and therefore that
marketers have huge potential markets for
promoting products and services.

6. The village retailer is the link between the rural consumer and
manufacturer. He plays a major role in introducing new products in
rural markets.
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Competitive product strategies for rural markets:

1. Branding strategy :
Branded goods comprise 65 percent of sales in villages today.
The share of non- branded goods is shrinking dramatically. Brand names
make products familiar and evoke possessiveness.
2. Customer value strategy:

As they are price sensitive. They are more concerned about
functional benefits of the products and the value for money they pay.
3. Innovation strategy :
Some companies choose to develop products especially to meet
rural market needs.
4. Spurious good strategies :

Spurious products, generally marketed by the unorganized, low
end entrepreneurs somehow make their way into the market and eat away
the large chunk of corporate marketers profits. The imitations will
resemblances that dupe the gullible consumer.5
5. Packaging strategies :
To enter the rural market innovative packages are necessary to add
value to the premium products. Small packs and combo packs have
became a major attraction in rural India.

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6. Brand strategies :
A company may introduce several brands in a product line
with different features to appeal to different categories in the same
customer group.
7 Co- Branding strategies:

Today, we find offers with two or more brands of the same
company or different companies. When a marketer offers one brand with
another brand of the same company or another company, such offers may
gain image for the brand.
Companies or brands which adopted various strategies to lure the

rural markets are Nirma, Lifebuoy, Tata Tea, Coca cola, Mahindra &
Mahindra, Kelvinator, Fair Glow, Colgate Etc.
According to NCAER estimates that around half of items sold in

these Meals are FMCG products and consumer durables.
4.04 Multinational Branding strategies of
FMCG personal
Care products:
Branding is an integral part of the business building process. Large
corporations spend hundreds of millions of dollars building their brands.
Brands have become the most valuable asset within any enterprise,
quintessential zing the knowledge, the art, the science, and the work of
each person in each work day, making them the ultimate symbol of much
that is good and true and beautiful within our global economy. In time,
Brands began to penetrate beyond the corporate world. The impact of
branding in the business building process of FMCG companies in India
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was also witnessed two decades back. The Indian FMCG sector is the
fourth largest sector in the economy with an estimated size of Rs.1, 300
billion. The sector has shown an average annual growth of about 11
percent per annum over the last decade.
Here an attempt to understand the concept and roles of branding

strategy in the business building process of FMCG companies. For the
better and in-depth understanding, case studies of four MNCs in the
FMCG sector in India are studied. The branding strategies of top four
MNCs i.e. P&G India, HUL, Colgate-Palmolive India and Amway India,
especially in the body care products among FMCG product are analyzed
in details. In the new emerging scenario, brands are becoming the most
valuable assets that a business can possess.
Brands are wealth generators of the twenty-first century. When

products are not differentiated in the factories, they are differentiated in
the consumers minds. Brands are capable of transforming mundane
products into objects of desire. Accordingly, the market value of a
business is determined by the number and types of brands it holds.
Brands create identifiable streams of earnings for a firm. Firms like HUL,
Amway India Ltd, P&G India and Colgate-Palmolive are not highly
valued because of tangible assets they hold. Rather their value is dictated
by the power of their brands. Brand power is nothing if none of the
customer following it enjoys.
It has been observed that companies start with one product but over
time- as they accumulate manufacturing and marketing capabilities they
tend to become multi-product. As the number of products handled by a
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company increases, it raises certain questions; what kind of branding

relations would they have among themselves? Companies differ in their
approaches to branding. Western companies seem to favors product
branding while the companies in the east practice mega-brand approach.
A company can choose from a variety of branding strategies. Product
branding is driven by customer logic. Each product is given a distinct
brand name. Line branding is targeted at a market segment. It seeks to
appeal to them with a concept. Usually lien brands offer complementary
products and hold them together under a common concept. For example
HUL adopts line branding in some case. Range brands extend beyond
product complementary. Rather, the products under the range brands
emanate from some area of expertise or competence. A range brand can
have apparently dissimilar products but all of them share a common
expertise. Umbrella branding means promoting all products under a
common name. It is favored because of economies, but this approach is
highly deficient from the viewpoint of customers logic. Firms cover
brand because of their wealth generating power. They are new generation
assets. Different MNCs adopt different branding strategies depending
upon their vision and goal. Some MNCs adopt multiple strategies for
branding for various categories of products but some companies adopt a
single strategy for the variety of products as a branding strategy.
4.05 Brand equity perception:

Brand equity is normally used by most organizations as a measure
of how strong the brand is. Brand equity has been considered in many
contexts, Aaker (1991)6, defines brand equity from a consumer
perspective of brand loyalty, awareness, perceived quality and brand
image whilst other authors such as Farquhar (1989)7 define brand equity
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from a financial perspective (added value endowed by the brand).

Because brand equity is so important for marketers, many invest millions
in marketing activities that are meant to increase it; however there seem
to be no link between brand equity measures and financial performance.
Many organizations track brand equity consistently in order to ascertain
consumer satisfaction, awareness and loyalty amongst other things.
Although this is a good practice, it does not add value if this information
is not shared with the rest of the organization especially the executives.
According to Ambler (2003)8, there is a big difference between
measuring brand valuation, market share and brand equity and more often
than not most companies focus on brand valuation rather than brand
equity. Brand equity is the asset itself whilst brand valuation measures
what the asset is worth. It is therefore logical to put measures in place to
track how the asset (brand equity) is performing. In essence, building
strong brand equity can influence future consumer behavior and therefore
increase the value of a brand (Ambler, 1995)9. According to a survey on
top 100 most valuable global brands 2009, knowing a brands value is
important as it enables business leaders, investors and other stakeholders
to make better decisions such as the return on investment in marketing
initiatives (Millward Brown, 2008). The brand value is calculated based
on the intrinsic value of the brand derived from its ability to generate
demand and is based on customer opinion (brand equity) and financial
performance (Mill ward Brown, 2008). This therefore supports the view
that brand equity tracking is important to ensure that the value of the asset
is sustained. A study conducted by Hong-bum, Woo & Jeong (2003)10,
on the effect of consumer based brand equity on firms financial
performance, they concluded that a lack of brand equity in hotel firms can
damage potential sales flow and that strong brand equity can cause a
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significant increase in revenue. These findings were based on the fact that
consumers base their choice of hotel and how much they are prepared to
pay on key factors such as: brand loyalty, awareness, perceived quality
and brand image all of these which are key components of measuring
brand equity.
From the discussion above, it is evident that brands are the heart of
any business and if well managed, they can help increase the firms
financial value however the question is how many organizations are
focusing on the short term (sales and market share) versus long term
(investing in brand building activities that will drive long term growth
and thus creating sustainable financial growth value of the firm).
Brand equity is another concept that is closely related to branding

and brand management. The concept of brand equity was invented in
1980s and only gained popularity in the 1990s (Aaker, 1991). It is
therefore still a relatively new and complex concept that is often difficult
to describe. The steadily growing literature contains several often
divergent viewpoints on the dimensions of brand equity, the factors that
influence it, the perspectives from which it should be studied, and the
ways to measure it. However, there is agreement among researchers on
the general definition of the concept. Brand equity is defined as the
marketing effects or outcomes that accrue to a product with its brand
name compared with those that would accrue if the same product did not
have the brand name (Aaker 1991; Dubin, 1998; Farquhar 1989; Keller
2003; Leuthesser 1988).

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Ambler (2003: 281), defines brand equity as an important

intangible asset for the company, it can be seen as the reservoir of results
gained by good marketing but not yet delivered to the profit and loss
account Yoo, Donthu & Lee (2000)11, define brand equity as the
difference in consumer choice between a branded and unbranded product
given the same level of product features. Aaker (1991) defines it as a set
of assets and liabilities connected to a brand that add to or detract from its
value to the customer and to the business and creating brand equity
profile involves the identification of the various customer associations
with a brand and levels of customer awareness and loyalty that set it apart
from competitors. Leiser (2004), concur and adds that all those
associations (positive, negative and neutral) evoked from customer
experience with a brand combine to create the brands equity. Because
brand equity is such a complex subject, it can be viewed from a variety of
perspectives. Motameni and Shahrokhi (1998)12, highlights that although
brand equity is generally viewed from two perspectives such as:
marketing decision making and financial perspective, there is a need to
view brands from a global perspective especially since successful
maintenance of global image and recognition translates into hard
currency in international business as is the case with the likes of
McDonalds and Coca Cola. Marketing decision includes aspects such as
awareness, loyalty, quality and propriety brand assets with an aim of
improving efficiency of the marketing process. Financial decision on the
other hand involves financial market, value based techniques (Motameni
and Shahrokhi, 1998). Best (2005), defines brand equity the way the term
equity in business is normally defined as depicted in figure 2.02 below.
According to Best (2005)13 in a business, the owners equity is the value
of the owners holdings in the company and is determined by the
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difference between what a company owns in assets and what a company

owes in liabilities, therefore the larger the ratio of assets to liabilities the
greater the owners equity. Brand equity can also be assessed the same
way and to calculate brand equity one must simply subtract the total
brand liability score from the total brand asset score (Best, 2005).
Brand equity can also be used to distinctly separate selling from

marketing as in essence selling seeks an immediate order for a product
and aims to increase the revenue line of a profit and loss account
immediately whilst marketing invests resources before it expects to reap
the rewards (Ambler, 2003). Brand equity has become the most valuable
asset for many companies. Kohli and Thakor (1997)14, make a very good
point by highlighting that consumers do not buy jeans but buy Levis and
no one buys corn flakes but Kelloggs and furthermore, the strength of
the brand names have resulted in acquisitions amounting to billions for
the following companies:
Nestle acquired Perrier for $2.5 billion.
Phillip Morris acquired Kraft for $13 billion.
Nabisco was sold for over $25 billon.
According to Ambler (2003) there is also a distinct difference

between the asset (brand equity) and what the asset is worth (brand
valuation). Brand equity also plays an important role in increasing the
value of the business and companies pay good money for these assets
(Ambler, 2003; Motameni and Shahrokhi, 1998). Aaker (1996) highlights
that there are four major assets through which brand equity generates
value and these are: brand name and awareness, brand loyalty, perceived
quality and brand associations.
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Because of the value that brand equity adds for shareholders, it is

still surprising that there are still debates as to whether brand equity
building activities are important or not and as a result companies that are
focused on short term gains do not perceive brand as important assets. By
viewing brands as assets, companies are better able to put their brand
building expenditure in context with the value that those brands deliver
(Davis, 2002)15.
According to Yoo et al (2000), there are several dimensions of

brand equity and any marketing action has the potential to affect brand
equity because it represents the effect of accumulated marketing
investments into the brand. Furthermore, brand name recognition with
strong associations, perceived quality of product, and brand loyalty can
be developed through careful long-term investments. In a study to
examine selected marketing mix and brand equity, Yoo et al (2000),
recognized that there are two types of marketing management efforts
from a long term perspective of brand management namely: brand
building activity and brand-harming activity. It was observed that
frequent use of price promotions is a typical example of brand-harming
activity whilst high advertising spending, high price and distribution
through retailers with store images and high distribution intensity are
good examples of brand-building activity. The results of regular price
cutting can negatively affect brand equity as a perception is created that
product quality has been compromised. In their recommendations, Yoo et
al (2000), suggests that managers should avoid frequent price cuts or a
consistent low price strategy because they lower perceived quality and
product image.
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From the above discussion, it is evident that brand equity is a major

marketing asset of many firms and that it can be used to drive long-term
growth and deliver value for shareholders. Although brand equity plays a
significant role in increasing shareholder value, it is important that
measures are put in place to track it. It is a well known fact that what is
not measured is not managed and therefore tracking and measuring brand
equity assist in creating brands that consistently deliver on their promise.
As brand equity is an intangible asset, most people struggle to quantify it
however various tools are available that have been used effectively by
many organizations to measure brand equity. An attempt to define the
relationship between customers and brands produced the term ``brand
equity'' in the marketing literature. The concept of brand equity has been
debated both in the accounting and marketing literatures, and has
highlighted the importance of having a long-term focus within brand
management. Although there have been significant moves by companies
to be strategic in the way that brands are managed, a lack of common
terminology and philosophy within and between disciplines persists and
may hinder communication. Brand equity, like the concepts of brand and
added value has proliferated into multiple meanings. Accountants tend to
define brand equity differently from marketers, with the concept being
defined both in terms of the relationship between customer and brand
(consumer-oriented definitions), or as something that accrues to the brand
owner (company-oriented definitions). It has been simplified that the
variety of approaches, by providing a classification of the different
meanings of brand equity as: The total value of a brand as a separable
asset when it is sold, or included on a balance sheet; A measure of the
strength of consumers' attachment to a brand; A description of the
associations and beliefs the consumer has about the brand.
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The first of these is often called brand valuation or brand value, and
is the meaning generally adopted by financial accountants. The concept
of measuring the consumers' level of attachment to a brand can be called
brand strength (synonymous with brand loyalty). The third could be
called brand image, though used the term brand description. When
marketers use the term ``brand equity'' they tend to mean brand
description or brand strength. Brand strength and brand description are
sometimes referred to as ``consumer brand equity'' to distinguish them
from the asset valuation meaning.
Brand description is distinct because it would not be expected to be

quantified, whereas brand strength and brand value are considered
quantifiable. Brand value may be thought to be distinct as it refers to an
actual or notional business transaction, while the other two focus on the
consumer. There is an assumed relationship between the interpretations of
brand equity.
The brand equity chain very simply, brand description (or identity
or image) is tailored to the needs and wants of a target market using the
marketing mix of product, price, place, and promotion. The success or
otherwise of this process determines brand strength or the degree of brand
loyalty. A brand's value is determined by the degree of brand loyalty, as
this implies a guarantee of future cash flows.
It has been considered that using the term brand equity creates the
illusion that an operational relationship exists between brand description,
brand strength and brand value that cannot be demonstrated to operate in
practice. This is not surprising, given that brand description and brand
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strength are, broadly speaking, within the remit of marketers and brand
value has been considered largely an accounting issue. However, for
brands to be managed strategically as long-term assets, the relationship
needs to be operational within the management accounting system. The
efforts of managers of brands could be reviewed and assessed by the
measurement of brand strength and brand value,
and brand strategy
modified accordingly, Whilst not a simple process, the measurement of

outcomes is useful as part of a range of diagnostic tools for management.
Whilst there remains a diversity of opinion on the definition and basis of
brand equity, most approaches consider brand equity to be a strategic
issue, albeit often implicitly It has been suggested that managers of
brands choose between taking profits today or storing them for the future,
with brand equity being the store of profits to be realized at a later date.
This definition of brand equity distinguishes the brand asset from

its valuation. This approach is intrinsically strategic in nature, with the
emphasis away from short-term profits. Davis (1995) also emphasizes the
strategic importance of brand equity when he defines brand value (one
form of brand equity) as the potential strategic contributions and benefits
that a brand can make to a company.'' In this definition, brand value is the
resultant form of brand equity in , or the outcome of consumer-based
brand equity. Keller (1993)16 also takes the consumer-based brand
strength approach to brand equity, suggesting that brand equity represents
a condition in which the consumer is familiar with the brand and recalls
some favorable, strong and unique brand associations.
Hence, there is a differential effect of brand knowledge on

consumer response to the marketing of a brand. This approach is aligned
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to the relationship described earlier, where brand strength is a function of

brand description. It has been related that brand equity to added value by
suggesting that brand equity involves the value added to a product by
consumers' associations and perceptions of a particular brand name. It is
unclear in what way added value is being used, but brand equity fits the
categories of brand description and brand strength as outlined above.
Leuthesser (1988) offers a broad definition of brand equity as: the set of
associations and behavior on the part of a brand's customers, channel
members and Parent Corporation that permits the brand to earn greater
volume or greater margins than it could without the brand name.
Marketers tend to describe, rather than ascribe a figure to, the outcomes
of brand strength. It has been suggested that brand equity increases the
probability of brand choice, leads to brand loyalty and ``insulates the
brand from a measure of competitive threats.'' Aaker (1991)
17
suggests
that strong brands will usually provide higher profit margins and better
access to distribution channels, as well as providing a broad platform for
product line extensions. Brand extension is a commonly cited advantage
of high brand equity, Keller and Aaker (1992) suggesting that successful
brand extensions can also build brand equity. Loken and John (1993) and
Aaker (1993) advise caution in that poor brand extensions can erode
brand equity. Farquhar (1989) suggests a relationship between high brand
equity and market power asserting that: The competitive advantage of
firms that have brands with high equity includes the opportunity for
successful extensions, resilience against competitors' promotional
pressures, and creation of barriers to competitive entry. This relationship
which indicates that there can be more than one outcome determined by
brand strength apart from brand value. It should be noted that it is argued
by Wood (2000)17 that brand value measurements could be used as an
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indicator of market power. Achieving a high degree of brand strength

may be considered an important objective for managers of brands. If we
accept that the relationships highlighted in are something that we should
be aiming for, then it is logical to focus our attention on optimizing brand
description. This requires a rich understanding of the brand construct
itself. Yet, despite an abundance of literature, the definitive brand
construct has yet to be produced. Subsequent discussion explores the
brand construct itself, and highlights the specific relationship between
brands and added value. This relationship is considered to be key to the
variety of approaches to brand definition within marketing, and is
currently an area of incompatibility between marketing and accounting.
The between brand equity and market power.

The question of the short-term effectiveness of sales promotions (or
lack of it) is particularly important for brands with a high level of
customer-based brand equity (from now on, referred to as high-equity
brands) because of concerns about the long-term effects of sales
promotions on brand equity Existing analytical models argue that, in such
a situation, the high-equity brand should price discount in order to capture
the buyers of the private label (Rao 1991)18. However, empirical evidence
on the effectiveness of sales promotions for high and low-equity brands is
mixed.
While some studies found that higher-quality brands gain more

from a price cut than lower quality brands (Blattberg and Wisniewski
1989), others found the opposite (Bronnenberg and Wathieu 1997)19.
Kellers (1993) defines the brand equity as it states that consumers are
more responsive to the marketing mix of brands with high levels of brand
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equity. Blattberg and Wisniewski (1989)20provide empirical evidence of

the higher promotion elasticity of high-quality brands in the case of a
duopoly between brands of differing perceived quality. There are also
theoretical arguments supporting the leveraging impact of brand equity
on benefit congruency. Compared to high-equity brands, low-equity
brands do not provide as many benefits (utilitarian or hedonic) and are
bought because of their lower price. Low-equity brands should therefore
be less sensitive than high-equity brands to the congruency between their
weaker benefits and those of the promotion. Prior research provides
evidence supporting this assertion.
The cross-promotion asymmetry documented by Blattberg and

Wisniewski (1989) implies that monetary promotions should be less
effective for the low-equity utilitarian brand despite their benefit
congruency because of their incapacity to attract the price insensitive
buyers of the high-equity brand. The loss aversion argument that explains
the cross-promotional asymmetry for monetary promotions applies to
non-monetary promotions as well. Non-monetary promotions should be
less effective for the low-equity hedonic brand than for its high-equity
counterpart because the buyers of high-equity brands are more reluctant
to trade down in hedonic product benefits (a loss) than buyers of lowequity brands are to trade up (a gain). Perhaps because coupons and
temporary price reductions are the most common form of sales
promotions, most research has assumed that monetary savings is the only
consumer benefit of sales promotions. Consequently, while many studies
have examined the costs of promotion usage, comparatively few have
examined their benefits to the consumer.
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It has been concluded that:
1. Sales promotions can provide consumers with an array of hedonic and

utilitarian benefits beyond monetary savings. Hedonic benefits include
value expression, entertainment, and exploration. Along with simple
monetary savings, utilitarian benefits also include product quality and
shopping convenience.
2. Non-monetary promotions provide more hedonic benefits and fewer

utilitarian benefits than monetary promotions. All benefits, except
quality, contribute to the overall evaluation of monetary and nonmonetary
promotions. However, each type of promotion is primarily evaluated
based on the dominant benefits it provides.
3. For high-equity brands, sales promotions are more effective when they
provide benefits that are congruent with those provided by the product
being promoted. Specifically, monetary promotions are more effective for
utilitarian products than for hedonic products. Conversely, non-monetary
promotions are relatively more effective for hedonic products than for
utilitarian products. In this research Definition of brand equity given by
Aaker has been taken as working definition of Brand equity, as it is a
consumer oriented definition of Brand equity.

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4.06 Aaker equity Frame work:

The Aaker equity framework gives Brand Equity frame work21.
Chart No 4.01 Aaker equity frameworks
Brand
Loyalty
B
R
A
Brand
Awareness
Reduced marketing costs,

Trade
Leverage
Attracting new customer
Create awareness
Reassurance
Time to respond to
Anchor to which other

Association can
be attached
Familiarity Liking
Signal of
substance/commitment
Brand to be considered
N
D
E
Q
Perceived
Quality
U
I
E
T
Brand
Associations
Other
Proprietary
Brand Assets
Reason to buy,
Differentiate/Position,
Price,
Channel Member
interests,
Extensions
Help process/Retrieve
Information,
Differentiate/Position,
Reason to
buy, Create positive
Attitude/feelings,
Extensions
Competitive Advantage
Provide value
To customer by
Enhancing
customers
Interpretation
Or Processing
of
Information
Confidence in
The purchase
decision
Use satisfaction
Provide value
to firm by
Enhancing
Efficiency &
Effectiveness
of
Marketing
Program
*Brand Loyalty
*Prices/Margin
s
*Brand
Extensions
*Brand
Leverage
*Competitive
Advantage
Source: Kevin lane Keller, Strategic Brand Management

Above Mentioned sources have been considered to measure Brand Equity
perception namely, Brand Loyalty, Brand Awareness, Perceived Quality.
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4.07 Review of district to be studied:

Parbhani:
Parbhani district earlier also known as Prabhavatinagar, is one of
the eight districts in the Marathwada region of Maharashtra State of India.
From 1596 to 1724, most of the present territory of the district was
divided between Pathri and Washim sarkars of Berar Subah of the
Mughal empire . In 1724, after the battle of Sakharkheda, it went under
the Nizam rule. Following the re-organization of the states in 1956,
Parbhani along with the other districts of Marathwada became part of
Bombay State. On May 1, 1960 when Maharashtra state was formed, it
became a part of it22. The state capital of Mumbai is to the west; Parbhani
is well connected by road to other major towns in Maharashtra and also in
the neighboring state of Andhra Pradesh. Parbhani is a major railway
junction connecting Andhra with Marathwada. It is also known as a store
of Jowar in Marathwada. In the field of education the Parbhani is known
for the famous Marathwada Agricultural University which is very helpful
for the peoples residing all around. Parbhani district covers an area of
about 6250.58 km 2. The district is divided into 9 administrative Sub-units
(Tahsils)-Parbhani, Gangakhed, Sonpeth, Pathri, Manwath, Palam, Selu,
Jintur, and Purna.According to the 2011 census Parbhani district has a
population of 1,835,98223, roughly equal to the nation of Kosovo24 or the
US state of Nebraska25 This gives it a ranking of 259th in India (out of a
total of 640) . The district has a population density of 295 inhabitants per
square kilometer (760/sq mi) . Its population growth rate over the decade
2001-2011 was 20.18percent. Parbhani has a sex ratio of 940 females for
every 1000 males and a literacy rate of 75.22 percent.

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Parbhani has been described as the land of saints, as several saints

have been associated with Parbhani including like Janabai from
Gangakhed. The famous mathematician Bhaskarbhatt was from Bori in
Parbhani district. The river Godavari flows through this district.
Jalna:
Jalna district is an administrative district in the state of Maharashtra
in western India. Jalna town is the district headquarters. The district is
part of Aurangabad division. The district occupies an area of 7718 km. It
has total 970 villages. The district is bounded on the north by Jalgaon
district, on the east by Parbhani and Buldhana districts, on the south by
Beed district and on the west by Aurangabad district. The district is
situated at the central Maharashtra, in the north Marathwada region. It is
one of the 8 districts of Marathawada region. The district has moderately
to gently sloping undulated topography. The Northern part of the district
is occupied by the Ajanta and Satmala hill ranges. Jalna was formerly a
part of the Princely State of Hyderabad and after the Indian independence
in 1947, became part of Aurangabad district.
On 1 May 1981 the new district was formed by carving out Jalna,
Bhokardan, Jafrabad and Ambad talukas (Sub-division) of Aurangabad
district and Partur taluka of Parbhani district. The district is divided into
two sub-divisions, Jalna and Partur. These are further divided into eight
talukas: Jalna, Ambad, Bhokardan, Badnapur, Ghansavangi, Partur,
Mantha and Jafrabad. The district was formed during the reign of chief
minister Abdul Rehman Anatul. According to the 2011census Jalna
district has a population of 1, 958, 483, 27 26roughly equal to the nation of
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2015
Lesotho or the US state of New Mexico. This gives it a ranking of 237th

in India (out of a total of 640). The district has a population density of
255 inhabitants per square kilometer (660/sq mi). Its population growth
rate over the decade 20012011 was 21.84 percent Jalna has a sex ratio of
929 females for every 1000 males, and a literacy rate of 73.61 percent.
Nashik:
Nashik formerly it was known as Gulshanabad and it is important
historically, myth logically, socially and culturally city. Known for the
temples on the banks of the Godavari and it has historically been one of
the holy sites of the Hindu and Muslim religion. It is one of the four cities
that host the massive Sinhastha Kumbh Mela once every twelve years.
After the fall of the Satavahana empire, the Abhiras or Ahirs ruled in the
north east and the Chutus in Maharashtra and Kuntala The Puranas state
that ten Abhiras ruled for, 67 years. The Nasik inscription peaks of king
Madhuriputra Ishvarasena the Abhir and a son of Shivadatla. This
dynasty originated in A. D. 249-50, an era called Kalachuri or Chedi in
later times.27
In Kritayuga, Nashik was 'Trikantak', 'Janasthana' in Dwaparyuga
and later in Kuliyuga it became 'Navashikh' or 'Nashik'. Classical Sanskrit
poets like Valmiki, Klidsa and Bhavabhuti have paid rich tributes here.
In 150 BC Nashik was the country's largest market place. From 1487
A.D, the province came under the rule of Mughal and was known as
Gulshanabad. It was also home of Emperor Akbar who wrote at length
about Nashik in Ein-e-Akbari. It was also known as the 'Land of the
Brave' during the regime of Chhatrapati Shivaji Maharaj.

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In April 1818, during the British rule, Nashik once again regained
its importance. The British fell in love with the beauty of the city and
developed it, including building the golf course, which was one of the
largest in Asia. Nashik is surrounded by nine hills, namely: Durga,
Ganesh, Chitraghanta, Pandav, DingerAli, Mhasarul, Pathanpura and
Konkani. This city with hills surrounding it has lakes which add to its
beauty. In 1869 the region came to enjoy unbroken peace. In 1869 Nashik
was made a full-fledged district with its present talukas. With the return
of peace Nashik flourished and prospered. Reasons, political, religious, as
well as commercial led to its rapid development. With the construction of
the railway, from Bombay to the north-east, very near the city, religious
minded devotees were attracted to the town in ever increasing numbers
where they made their purchases of various artistic & useful articles. This
made Nashik a great trade centre where artisans skilled in manufacturing
utensils & smiths excelling in workmanship in silver & gold crowded to
ply their trade.
Under Maratha rule, they advanced sums to finance military
campaigns of feudal Sardars and in their later times their Pedhis gradually
began to finance the flourishing trade in metal ware and fabrics as well as
in grapes and onions. However, the revolutionary activities at Nashik
continued. It was during this time that 'Abhinav Bharat ' was formed. The
young Nashikites were influenced by the speech of Lokmanya Tilak
given on the 26th of August 1906.
Vinayak Damodar Savarkar:

Through 'Abhinav Bharat', successfully organized underground
movement against the British rule.
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Ahmednagar:
The town Ahmednagar was founded in 1490 by Ahmad Nizam
Shah on the site of a more ancient city, Bhingar. With the breakup of the
Bahmani Sultanate, Ahmad established a new sultanate in Ahmednagar,
also known as Nizam Shahi dynasty.
It was one of the Deccan Sultanates, which lasted until its conquest
by Mughal emperor Shah Johan in 1636. Aurangzeb, the last great
Mughal emperor, who spent the latter years of his reign, 16811707, in
the Deccan, died in Ahmednagar and his burial at (khultabad) near
Aurangabad in 1707, and a small monument marks the site.
Maharani Ahilyabai Holkar was born on 31 May 1725 in Chondi village
of Jamkhed taluka in Ahmednagar district.
Military base
Ahmednagar is home to the Indian Armoured Corps Centre &
School (ACC&S), the Mechanized Infantry Regimental Centre (MIRC),
the Vehicle Research and Development Establishment, (VRDE) and the
Controller ate of Quality Assurance Vehicles (CQAV). Training and
recruitment for the Indian Army Armoured Corps takes place at the
ACC&S. Formerly; the city was the Indian base of the British Armies
Royal Tank Corps / Indian Armoured Corp, amongst other units. The
town houses the second-largest display of military tanks in the world and
largest in Asia. 28
As of 2011 Indian census,
29
Ahmednagar had a population of
347,549. Males constitute 53 percent of the population and females 47

percent. Ahmednagar has an average literacy rate of 84 percent, higher
Page 203

than the national urban average of 79.9 percent.
30
2015
10 percent of the
population is under 6 years of age.

1. Ahmednagar Fort - Built by Ahmed Nizam Shah in 1490, this is one
of the best-designed and most impregnable forts in India. As of 2013,
it is under the control of the military command of India. Oval in shape,
with 18-metre-high walls and 24 citadels, its defense system includes
a moat 30 meters wide and 4 to 6 meters deep. Rehekuri Blackbuck
Sanctuary: This is situated in Karjat taluka in Ahmednagar district.
The area of the sanctuary is 2.17 km2.31
2. Pimpri Gawail- is a village in Parner taluka in Ahmednagar district. It

is located about 25 km away from Ahmednagar and it is well known
for the watershed development and agribusiness activities. This village
has done very basic work in the rain water harvesting trough Deep
CCT structures and groundwater regulation and management. Farmers
self Help groups of the villages formed Producer Company for the
value addition of their agricultural commodity. This village has
conserved environment through participatory approach.
3. Mahatma phule krishi vidyapeeth, Rahuri , Mahatma Phule Krishi

Vidyapeeth is an agricultural university at Rahuri, named after an
activist and social reformer of 19th centuryone of four agricultural
universities in the state.32
4. Ahmednagar city have air connectivity by Seaplane service. The port

for Seaplane is
located at Mula Dam water reservoir, 30 min away

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2015
from Ahmednagar City. The service offered by Maritime Energy Heli

Air Services Pvt. Ltd. (MEHAIR) from 22nd September 2014.
Ongoing Flight is available from Juhu, Mumbai to Mula Dam. The
service will now enable the large number of pilgrims traveling to the
holy sites of Meherabad, Shirdi and ShaniShingnapur to travel quickly
and conveniently to their destinations.
Aurangabad:
Malik Ambar made it his capital and the men of his army raised
their dwellings around it. Within a decade, Kharki get a populous and
imposing city. Malik Ambar cherished strong love and ability for
architecture. Aurangabad was Ambar's architectural achievement and
creation. However, in 1621, it was ravaged and burnt down by the
imperial troops under Jahangir. Ambar the founder of the city was always
referred to by harsh names by Emperor Jahangir. In his memoirs, he
never mentions his name without prefixing epithets like wretch, cursed
fellow, Habshi, Ambar Siyari, black Ambar, and Ambar Badakhtur.
Malik Ambar died in 1626. He was succeeded by his son Fateh Khan,
who changed the name of Kharki to Fatehnagar. In the same year, the
Moghal viceroy Khan Jahan Lodi, advanced on the city, but retired to
Burhanpur on being bribed by the Nizam Shahi Commander, Hamid
Khan. With the capture of Daulatabad by the imperial troops in 1633, the
Nizam Shahi dominions, including Fatehnagar, came under the
possession of the Moghals. In 1653 when Prince Aurangzeb was
appointed the viceroy of the Deccan for the second time, he made
Fatehnagar his capital and called it Aurangabad. Aurangabad is
sometimes referred to as Khujista Bunyad by the Chroniclers of
Aurangzeb's reign.
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2015
In March 1666, accompanied by a body of 1,000 select troops,

Shivaji arrived at Aurangabad on his way to Agra Safshikan Khan, the
governor of Aurangabad, treated him with scant respect. For this act, he
was severely reprimanded by Jai Singh and made to pay a courtesy call
on Shivaji In 1668, the city nearly became a scene of a conflict between
the imperial troops under Diler Khan, and those commanded by Prince
Muazzam, the viceroy. In 1681, after plundering Burhanpur, the Marathas
assembled in the neighborhood of the Satara hills in order to attack
Aurangabad. The plan was, however, abandoned on hearing of the arrival
of the viceroy, Khan Jahan Bahadur. In the same year, Khan Jahan
Bahadur erected a wall around Aurangabad to protect it against surprise
attacks of the Marathas. It was done at the order of the Emperor, and cost
rupees three lakhs. Two years later, the Emperor himself arrived at
Aurangabad.

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2015
4.08 Reference:
1. www.cii.in
2. www.bis.gov
3. Article.economictimes.indiatimes.com
4. Kish, P., Riskey D.R. & Kerin, R.A. (2001), Measurement and
tracking Brand equity in the market place: The PepsiCo experience,
International marketing Review, 18 (1):91-96
5. www.Zenithresearch .origin
6. Aaker, D. (1991), Managing Brand Equity: Capitalizing on the value
of a Brand Name, The Free Press, New York, NY.
7. Farquhar, P. (1989), Managing Brand Equity, Marketing Research,
1 (9): 24-33.
8. Ambler, T. (2003), Marketing and the bottom line, 2nd edition.
London,Prentice Hall.
9. Ambler, T. (1995), Building Brand Relationship, December 1,
Financial Times.
10.Hong-bumm, K. and Woo, G.K., Jeong, A.A. (2003), The effect of
consumer based brand equity on firms financial performance,
Journal of Consumer Marketing, 20 (4): 335-351
11. Yoo, B & Donthu.(2001)Developing and validating multidimensional
consumer based.
12.Motameni, R. and Shahroki, M. (1998), Brand equity valuation: a
global perspective, Journal of Product & Brand Management, 7 (4):
275- 290
13.Best, R.J. (2005), Market-based management: strategies for growing
customer value and profitability. 4th edition. Pearson: Prentice Hall.

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14.Kohli, C. and Thakor, M. (1997), Branding consumer goods: insights

from theory and practice, Journal of Consumer Marketing, 14 (3):
206- 219
15.Davis, S. (2002), Brand Asset Management: how businesses can
profit from the power of brand, Journal of Consumer Marketing, 19
(4): 351- 358.
16.Keller, K. L. (1993), Conceptualizing, Measuring, and Managing
Customer
17.Wood, L. (2000), Brands and brand equity: definition and
management Management Decision, 38 (9): 662-669
18. Rao, Ram C. (1991), Pricing and Promotions in Asymmetric
Duopolies, Marketing Science, 10 (2), 131-44.
19.Bronnenberg, Bart J. and Luc Wathieu (1997), Asymmetric
Promotion Effects and Brand Positioning, Marketing Science, Vol.
15 (4), 379-94.
20.Blattberg and Kenneth J. Wisniewski (1989), Price-Induced
Patterns of Competition, Marketing Science, 8 (4), 81-100.
21.Kevin lane keller. Strategic Brand management ,
22."Chapter 2-History". Parbhani District Gazetteers, Government of
Maharashtra. 1967.
23."District Census 2011". Census2011.co.in. 2011. Retrieved 2011-0930.
24.US Directorate of Intelligence. "Country Comparison: Population".
25."2010 Resident Population Data". U. S. Census Bureau. Retrieved
2011-09-30. Nebrask1, 826,341
26."Parbhani District: Census 2011 data". Retrieved 9 October 2012.

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27.Nashik conspiracy case- Historical cases from Mumbai high court

archived
documents [1][based on the translated version of the
1923 book The Sadguru of
Sakori]
28.US Directorate of Intelligence. "Country Comparison:Population".

Retrieved 2011-10-01 Lesotho1, 924,886.
29."2010 Resident Population Data". U. S. Census Bureau. Retrieved
2011-09-30.
New Mexico 2,059,179
30.Deo N S (2012). Darul Majanine, Jalna to Institute of Mental Health,

Erragadda
Hyderabad: The Forgotten History, Research Aaj Tak
Vol.1 No.4 (Sept-Dec 2012).

31."Cities having population 1 lakh and above". censusindia. The
Registrar General
& Census Commissioner, India. Retrieved 29
December 2012.
32."Urban Agglomerations/Cities having population 1 lakh and above".
Censusindia. The Registrar General & Census Commissioner, India.
Retrieved 29 December 2012.

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A Study of Branding Strategies of Indian Brand In Personal

Care FMCG with special Reference to Maharashtra.

Chapter No: 04 Conceptual Frame works

Brand Extension and Brand Dilution.

Chapter No: 0 4 Conceptual Framework of Indian and Multinational brand FMCG in

A Study of Branding Strategies of Indian Brand In Personal

4.04 Multinational Branding Strategies of FMCG Personal Care

Chapter No: 0 4 Conceptual Framework of Indian and Multinational brand FMCG in

A Study of Branding Strategies of Indian Brand In Personal

4.02 Branding strategies In India:

A Study of Branding Strategies of Indian Brand In Personal

different products, of differing quality to be sold without confusing the

perception of what business the company is in or diluting

higher quality products.

Attitude Branding and Iconic Brands:

Chapter No: 0 4 Conceptual Framework of Indian and Multinational brand FMCG in

A Study of Branding Strategies of Indian Brand In Personal

Brand Extension and Brand Dilution:

characteristics) to soak up some of the share of the market. The rationale

A Study of Branding Strategies of Indian Brand In Personal

of branding that treat individuals and organizations as the products to be

Crowd sourcing Branding:

4.03 FMCG sector In India and

Indian Branding strategies of

personal care products:

A Study of Branding Strategies of Indian Brand In Personal

Dabur is among the top five FMCG companies in India and is an

A Study of Branding Strategies of Indian Brand In Personal

ITC Ltd with a market capitalization of Rs 137,000 Crore, ITC is

HUL-is Indias largest FMCG Company with categorized business

Kwality walls and pure it.

Chapter No: 0 4 Conceptual Framework of Indian and Multinational brand FMCG in

A Study of Branding Strategies of Indian Brand In Personal

Colgate Palmolive (India ) Ltd- with Rs 11,000 crores as the

Godrej Consumer Products Ltd- Rs 350 Crore 18 percent is a

A Study of Branding Strategies of Indian Brand In Personal

Group, a leading household care company in Indonesia and Issue Grou,

MaricoLtd - Marico is a leading Indian Group in consumer

Marico is also present in the Skin care solution segment through

A Study of Branding Strategies of Indian Brand In Personal

Personal care products:

Personal care products are divided into 6 Categories

A Study of Branding Strategies of Indian Brand In Personal

Usage of hair oil is an everyday habit with 50 percent of the

Hair care Shampoos:

A Study of Branding Strategies of Indian Brand In Personal

middle class product, as more than 50 percent of the consumer use

The Indian Cosmetic Industry is defined as Skin care, Hair care ,

A Study of Branding Strategies of Indian Brand In Personal

beauty product business as conveyed by beauty expert Shahnaz Husain

The Indian cosmetics market which traditionally strong hold of a

According to analysis and figures given by the confederation of

A Study of Branding Strategies of Indian Brand In Personal

percent per annum across different segments of the cosmetics industry

The Indian hair care market:

Chapter No: 0 4 Conceptual Framework of Indian and Multinational brand FMCG in

A Study of Branding Strategies of Indian Brand In Personal

The Indian Soap Industry

A Study of Branding Strategies of Indian Brand In Personal

Indian Soap Industry volume is Rs 4800 Crore. For purpose of

Some of top leading companies soap,

Chapter No: 0 4 Conceptual Framework of Indian and Multinational brand FMCG in

A Study of Branding Strategies of Indian Brand In Personal

The price of the premium segment product is twice that of