IMC

Concept,  Function  and  Tools  

Car  Market  Overview  

Segm ent shares Grow th rates

00-01 01-02 02-0303-0400-01 01-02 02-03 CAGR
Segment A 30.6% 29.5% 26.5% -26.1% -3.2% -8.9%
Scorpio   Segment B 37.9% 41.0% 42.4% -1.3% 8.6% 4.7%
Segment C 10.5% 9.1% 10.6% 32.6% -12.6% 18.3%
Segment C+ 3.4% 2.8% 2.7% -4.6% -17.1% -3.1%
Segment D 0.1% 0.8% 1.7% 16.2% 828.7% 115.1%
UV 13.6% 12.8% 10.0% -17.2% -5.9% -20.9%
Entry SUV 4.0% 4.0% 6.2% 353.4% 0.1% 57.2%
SUV 0.0% 0.0% 0.0%
Total 693.5 695.5 705.1 -7.9% 0.3% 1.4%

Evolved  consumers   Competition  

• The  expectations  on  comforts   • Saw  themselves  as  a  car  vs.  UV  
• Definition  of  luxury   manufacturers  
• Wanted  thrill  of  an  SUV,  but  the  comforts  of   • Divided  market  on  the  basis  of  ‘car  
a  car   segments’  
• A,B,C,Detc.  
• At  the  same  time  was  savvy  in  terms  of  price-­‐
value  equation  

1
 Scorpio  Launch  Challenges   Scorpio  Communication  strategy  
• Unrealistic  objectives   • Call  itself  a  CAR  
• 1200  vehicles  a  month   • Connotes  the  comforts,  luxury  and  imagery  
• Category  leader  –  Safari  was  selling  250  vehicles  a   associated  with  it  
month   • Give  international  look  &  feel  
• Mahindra  Baggage   • Keep  it  within  the  city  
• Product  is  Ready  –  Looked  like  a  tank!   • Scorpio  to  dominate  Mahindra  
• Bring  up  the  imagery  of  Mahindra  
 

Product  design  
• The  spare  wheel  at  the  bottom  
• Seats  
• Hand  rests  at  the  doors  
• Music  system  as  part  of  the  original  equipent  

2
3
4
5
 Result  for  Scorpio   Even  helped  the  overall  growth  
of  C    
• Sales  of  more  than  2500  vehicles  per  month   segment  &  entry  SUV  
• One  month  waiting  period  in  a  highly   Segm ent shares Grow th rates
99-00 00-01 01-02 02-03 03-04 00-01 01-02 02-03 03-04 CAGR
competitive  market   Segment A 38.1% 30.6% 29.5% 26.5% 24.3% -26.1% -3.2% -8.9% 19.3% -4.9%
Segment B 35.4% 37.9% 41.0% 42.4% 40.3% -1.3% 8.6% 4.7% 23.7% 6.7%
• Various  awards  in  “CAR”  category   Segment C 7.3% 10.5% 9.1% 10.6% 12.2% 32.6% -12.6% 18.3% 49.7% 15.5%

• Effies  award  for  advertising   Segment C+

Segment D
3.3%
0.1%
3.4%
0.1%
2.8%
0.8%
2.7%
1.7%
3.4%
2.4%
-4.6% -17.1% -3.1% 65.7%
16.2% 828.7% 115.1% 84.8% 112.1%
4.9%

• Created  a  whole  new  category  &   UV

Entry SUV
15.1%
0.8%
13.6%
4.0%
12.8%
4.0%
10.0%
6.2%
10.7% -17.2%
6.5% 353.4%
-5.9% -20.9% 39.8%
0.1% 57.2% 37.2%
-2.9%
57.8%
terminology  in  Indian  four  wheeler  market   SUV 0.0% 0.0% 0.0% 0.0% 0.3%
Total 753.1 693.5 695.5 705.1 918.3 -7.9% 0.3% 1.4% 30.2% 4.1%
 

Role  of  Promotion  in  Marketing    

The  brands  can  exist  only  if  they  
communicate.  
 
Focus  on  
Focus  on  
Promo7on   Improving  Value  
Relevant  

Great  brands  have  a  gift  of  speech  

Offered  Value  

 
Not  Relevant  

Focus  on  
Marke7ng   Focus  on  Offer  –  
Strategy  &   Product,  Price  
En7re  marke7ng  
Mix  

Not  Relevant   Relevant  

Perceived  Value  

Marketing  Communication  Mix  

Advertising   SP   PR   PS   DM  
IMC  Tools   Print  and  broadcast  ads  
Packaging-­‐outer  
Contests,  games,  
sweepstakes,  lotteries  
Press  kits  
Speeches  
Sales  presentations  
 
Catalogs  
Mailings  
Packaging  inserts   Premiums  and  gifts   Seminars   Sales  meetings   Telemarketing  
Motion  pictures   Sampling   Annual  reports     Electronic  shopping  
Brochures  and  booklets   Fairs  and  trade  shows   Charitable  donations   Leave-­‐Behinds/   TV  shopping  
Posters  and  leaflets   Exhibits   Sponsorships   Collaterals   Fax  mail  

Marketing  Communications  Mix   Directories  

Reprints  of  ads  
Demonstrations  
Coupons  
Publications  
Lobbying  
 
Samples  
E-­‐mail  
SMS  
Billboards   Rebates   Identity  media    
Display  signs   Low-­‐interest  financing   Company  magazine   Fairs  and  trade  
Point-­‐of-­‐  purchase  displays   Entertainment   events     shows  
Audiovisual  material   Trade-­‐in  allowances   Product  placements  
Symbols  and  logos   Continuity  programs   WoM  
Videotapes     Tie-­‐ins  

6
 Key  definitions   Need  to  Classify  
•  Advertising:  paid  form  of  non-­‐personal  presntation/  promotion   •  Situation  
of  ideas,  goods  or  services  by  an  identified  sponsor.   •  Product/  Market    
•  Sales  Promotion:  Short-­‐term  incentives  to  encourage  trial/   •  Consumer  Buying  Behavior  
purchase   •  Consumer  Prior  Knowledge,  Motivations,  Information  
•  Public  Relations  &  Publicity:  Promote/  protect  Brand’s  image  in   Processing  ability  
an  indirect  way   •  Consumer  Response  –  Cognitive,  Affective,  Behavioural  
•  Personal  Selling:  F2F  interaction  with  one/more  prospective   •  Communication  
buyers.   •  Modality  (sight,  sound,  text/  iconic,  associative,  persuasive,  
•  Direct  Marketing:  Use  of  interactive  media  to  communicate   Interactive)  
directly  or  solicit  direct  response    from  specific  customers  and   •  Executional  ability  (Informational/  emotional)  
prospets  

Choice  Criteria  of    Elements  of  

Communication  Mix  
Element   Characteristics   Cost   Measur-­‐ Image   Action   Credibility   Targeting   Control  
ability   building   oriented   over  
ability   message  
Ad   -­‐
-­‐
Public  approval  
Standardized  Offer  
             

-­‐ Dramatization  
-­‐ Non-­‐inrusive  
-­‐ Repeat  messages    
PS   -­‐
-­‐
Interactive  
Cultivation/  
             

Objection  Handling  
-­‐ Response  
-­‐ Demonstration  
SP   -­‐ Attention    
-­‐ Incentive  
             

-­‐ Invitation  to  buy  

Now/More  
PR   -­‐ High  Credibility  
-­‐ Approval,  Hype  
             

-­‐          Catch  Ad  avoiders  

DM   -­‐ Customized  
-­‐ Interactive  
             

-­‐ Response  oriented