Session 1: Customer Value Proposition
Value is created when a customer is satisfied. When any product/service is able to solve a problem of the consumer, it can be said that value has been created. The total benefits a customer can gain after his/her payment is done can be termed as value.
Customer benefits are a set of tangible and intangible features that a consumer can use.
Product:Thums Up. Cola Beverage for Indian Market.
- 1970s-early 80s: Emotional benefits offered: Refreshment, Happiness.
- 1980-1993: Adventure, Confidence, Masculinity.
- 1995- onwards: Masculinity, Playful, Humorous, Confident.
- Unique benefit (Differentiator/USP): “Taste The Thunder.” A strong taste.
Session 2: Consumer Buying Behavior (Questionnaire)
Q: Who buys thums up?
A: Target Audience: Men who considered themselves as adults. Section A,B,C Households. Males:20-29 years. (Upper most segment of the consuming class-A1,A2 and B1. Middle class: B2 & C.)
Q: What problem will this product solve?
A: To quench thirst with a unique flavor imparted due to strong carbonation and added flavors.
Q. Which attributes are important and why?A: Flavor, Color, Odor, Price, Packaging, Availabilty and Advertising are important attributes. In a cut throat market of aerated soft drinks these attributes differentiate the product from other players.
Q. If this decision is the first time, how will it go? If it is repeat, how will it go?
A: A brand loyalist may not go for a new cola, but may try out of curiosity. Adequate promotion of the brand should create awareness for the product. If the first experience was unique and good, the customer will make a repeat decision.
Q. How was the thinking/deliberation in your head?
A: Good
Session 3: Competitive Analysis
In 2013, due to rise in bottled water and juices, soft drink off trade sales recorded a growth. Sports and energy drinks faced pressure due to increasing health concerns. Coca Cola and Pepsi introduced new flavors across the year coinciding with major sporting events and festivals. Small players like Pioma industries also launched new flavors (guava). Both Pepsi and Coca Cola introduced new flavors in their juice product mix. Pepsi launched Tropicana Coconut blends while Coca Cola launched Minutemaid Guava flavor. Independent small grocers remained as the leading distribution channel for off trade volume sales. However, independent groceries, retailers and corner shops faced a stiff competition from hypermarkets. Soft drinks are predicted to record further growth in off trade sales in urban and rural areas as well. Increased focus on marketing and communication would support growth over the forecast period.
SWOT Analysis
Strengths: Brand Image, Unique Taste, Brand Loyalty, Pricing.
Weakness: Aerated drink is not a preferred choice for the health conscious.
Opportunity: Growing market, Creative marketing tools, Innovation, More advertising, Increasing brand recognition, levering parent company Coca-Cola.
Threat: Other aerated drinks, substitutes like fruit juices, new entrants, government regulations, Health issues, Market instability.
Competitors: Pepsi, Mountain Dew, Sprite, Coca-Cola, Parle-Agro.
Session 4: Consumer Decision Making
Stimulus: Commercial(features that initiate response), Social (peer pressure) and Physical(response to need viz. thirst.). Outside sources, friends, media, etc. also promote the beverage.
Problem Recognition: Shortage, Unfulfilled desires like refreshment, machismo, adventure. A marketer’s job is to make the product more alluring to a consumer by offering features that solve consumer’s problems. Thums Up can be used to quench thirst or to satisfy pleasure.
Information Search: A customer looks for more information on his choices. This can be done either externally or internally. Internal search is the pre existing knowledge of the product whereas external search employs all other means of finding more information. Businesses can control mostly external sources of information.
Alternative Evaluation: Alternatives are competition to a brand. A product must be in the top 3-4 alternatives in a consumer’s consideration set. To get into a consumer’s customer set the following three factors must be considered:
*Informing consumers about what benefit the product offers.
*Changing performance beliefs and ensuring the product is superior to alternatives on key aspects.
*Ensuring the weight is on aspects that consumers value at the given time.
Purchase:
Purchase can be from two sources: 1) Store 2) Non-Store (Over Internet)
Post-Purchase Evaluation:
Customer satisfaction can be achieved when the product/brand perception exceeds consumer expectations. There are three possible consumer responses: 1) Exit: Consumer buys product once and leaves. 2)Voice: Consumer expresses the experience to other consumers. 3)Loyalty: Due to satisfaction, consumer decides to become a recurring customer. Following up with customers is an important practise.
Session 5: Product Lifecycle
A product has the following 5 stages in its life cycle: 1) Pre-Launch 2) Introduction 2) Growth 3) Maturity 4)Decline
Pre-launch: A period of no profit no loss since the product is in development.
Introduction: Initial sales are made to investors. Low sales, small market size. It could be an expensive stage in the cycle for a new product. Thums Up was launched in 1977 to meet challenges from Coca Cola.
Growth: Growth in sales and profits. Product gains popularity and acceptance which leads to profit being registered. Thums Up enjoyed a near monopoly after overshadowing local players like Campa Cola, Dukes, Double seven, etc.
Maturity: The longest phase which maximizes product’s sale and profits. After establishing in the market the aim is to maintain market share. This is the phase of emerging competition hence the emphasis should be upon product modifications or improvements. Thums up is at maturity stage today. It has been successful in attracting more customers and increasing its market share.
Decline: Sales begin to decline until the product is no longer profitable.This phase is characterized by a Shrinking market size. Profit can still be made by using cheaper methods of production and focusing on smaller markets.
Session 6: Marketing Mix
Marketing Mix is a phrase used to describe various choices an organisation has to make in order to get a product/service out in the market. Individuals and groups obtain their needs and wants by creating, offering and exchanging products of value with each other.
P’s of Marketing
Place: Thums Up is primarily an Indian product. Distribution of Thums Up follows a FMCG distribution pattern. The product is sold in shops, door to door, online, trade fairs and markets.
Price: Beverage market is an oligopoly market (few sellers and large buyers), hence cartel contracts are formed to enforce a mutual balance in pricing amongst sellers. Pricing strategy is based on competitor’s pricing, in Thums Up’s case: Pepsi and market and geographic conditions as well.
Price: 200 ml Glass bottle: Rs. 10
300 ml Glass Bottle: Rs. 13
330 ml Can: Rs. 30
600 ml pet bottle: Rs. 36
1.25 l pet bottle: Rs. 52
2 l pet bottle: Rs. 75
Promotion: Thums Up employs various promotional and advertising strategies to increase demand by associating life style and behavior and offering value based advertising. Banner ads, internet promotion, and radio are also used by the brand. By using CSR(Corporate Social Responsibility) as a marketing tool, it gains an emotional benefit in the consumer’s mind. Brand Ambassadors include celebrities like Akshay Kumar, Mahesh Babu and Salman Khan. It employs both push (promotion) and pull (advertising and campaigns) besides allowing price discounts and allowances to distributors to push more units into the market.
People: Having insight of target customer’s is a must in the marketing mix tool. Thums up is a popular choice for Indian males and the product is positioned for Indian consumers only.
Process: It includes the systems used to deliver the product. This also serves as a differentiator from competitors. Consumer loyalty and confidence in the company can be built by optimising the delivery process. In a consistent service every personnel knows what to do and how to do.
Physical Environment: This tells from where the product is being delivered from. Retailers who operate out of shops can benefit out of this tool. Premium prices for a service can be charged or a positive experience can be created for the consumer.
Product: Packaging includes cans, pet bottles of varying capacity (500 ml-2 l), glass bottles (200 ml- 300 ml). Logo is of a red thumbs up hand gesture with a sans serif typeface. The way the product is packaged and presented helps draw a customer’s attention.
Session 7: Customer Value Hierarchy and 3C’s Model (Kenichi Ohmae model)
Customer Value Hierarchy:
Marketers need to address 5 product levels to determine and increase customer satisfaction. Each level adds more customer value and together they form customer value hierarchy.
Core Benefit: The core service or benefit a customer is paying for is the core benefit. For Thums Up, the core benefit is to quench thirst.
Basic Product: The core benefit is shaped into a basic product with defined attributes and features. Thums up is a cola drink, available in varying capacities across India.
Expected Product: In this stage, the product is furnished with attributes that a customer would expect while making the purchase. With Thums Up customers would expect a reasonably priced cola drink that has a unique differentiating taste and is easily available.
Augmented Product: During this phase, a marketer is responsible to offer a product which would exceed customer expectations. Brand positioning and competition usually figure during this phase however for Indian markets it may occur during Expected product stage. Thums Up has a strong cola taste and is priced as per competitor’s prices(constant adjustments) with a FMCG delivery model.
Potential Product: At this stage, marketers need to focus on future operations. All possible renovations and augmentations are considered and at this stage novel ideas need to be developed to satisfy customers and ensure the differentiating factor of the product. Thums Up can relaunch it’s cola sachets as a ready to make beverage. Pricing adjustments can be done keeping competitor’s pricing in mind. For the health conscious, a low calorie Diet Thums Up can be launched to add variety to the product mix.
3C’s Model (Kenichi Ohmae model)
3C Model is a business model that considers three integral factors which help a business succeed. It was developed by Kenichi Ohmae. The three factors are as follows:
Customer: Customers are segmented to understand consumer behavior better. This segmentation is done on the basis of the following parameters: Segmentation by Objectives(ways in which consumers use the product), Segmentation by customer coverage, Re segmenting the market, Changes in Customer Mix.
Competition: Power of image – A strategy based on image needs constant monitoring and may be risky. If product performance and mode of distribution are difficult to distinguish, image may be the only positive differentiation.
Capitalizing on profit and cost structure differences – Difference in source of profits can be exploited and difference in ratio of fixed cost to variable cost can also be used strategically to gain market share.
Hito Kane Mono – People, money and things (fixed assets). When these three resources are used to their optimum potential without any waste streamlined corporate management can be achieved.
Corporation: Corporate strategies look to maximize strengths of the corporation relative to competition. Some of the strategies are: selecting and sequencing (gaining a decisive edge over one or select functions), cost effectiveness (reducing basic costs, picking high impact operations, share key functions with corporation’s other businesses or other companies.), make or buy (subcontracting major share in assembly operations can create a difference in cost structure and an ability to cope with demand fluctuations.)
Link between Customer value Hierarchy and Kenichi Ohmae’s model.
Customer(Core Benefit, Expected product)
Competitors(Augmented Product, Basic product) Company(Basic Product, Potential product)
Session 8 : Product Mix
Product mix is the range of all products and items offered to a customer by the seller. It consists of product lines (related products sold individually).
Product mix consists of width, length, depth and consistency. Line width depicts how many different product lines the company offers. Line length shows total number of items in the product mix. Line depth is the number of sub categories(variants) that a product has, line consistency shows how closely the products resemble each other and line vulnerability is the percentage of sales and profits obtained from a few products in the line.
For Thums Up, the product mix consists of packaged cola drink only. Line depth of Thums Up is strong consisting of cans, glass bottles and pet bottles of varying capacity. Thums Up has maintained its line consistency by sticking to its mix containing less but popular variants.
Session 9: Product Mix Pricing
Sellers look to maximize their profits by selecting an appropriate set of prices for its product mix. 6 situations need product mix pricing.
1) Product Line Pricing:
Such a pricing establishes perceived quality differences that justify the price differences. Customers will associate quality difference at various price points.
2) Optional feature pricing:
Numerous products have optional products, features and services offered along with them. Pricing for such a product/s may be dicey as companies have to decide which additional services/products pricing should be included at standard price and which to be charged separately.
3) Captive Product Pricing:
Certain products need use a captive product, eg: Ink cartridges for printers. If the captive product is priced too high, substitutes and counterfeit knock offs can erode sales.
4) 2 part pricing:
2 part pricing includes fixed fee and variable usage fee. e.g: Amusement parks have a fixed entry fee and additional charges for select rides. Fixed fee is supposed to be low to induce purchase whereas usage fee can be used to generate profit.
5) By-product pricing:
Production of certain goods (eg: petroleum, meat) often result in by products that should be priced on their value. Income earned on by products will allow companies to charge a lower price for the main product to meet competitor’s prices.
6) Product Bundling prices:
Sellers bundle products and features as
Pure bundling: When firm offers its products only as a bundle. It is a form of tied-in sales.
Mixed bundling: Seller offers goods both individually and in bundles. Generally bundles are priced lesser for the bundle than the individually sold items.
Price Decision Influences:
Internal
- Organizational/Marketing objectives.
- Pricing Objectives.
- Costs.
- Other marketing mix variables.
External(Market & Environment)
- Channel member expectations.
- Buyer’s perceptions.
- Perceived value for money.
- Competitions.
- Legal and regulatory issues.
- Inflation/Currency fluctuations.
200 ml Glass bottle: Rs. 10
300 ml Glass Bottle: Rs. 13
330 ml Can: Rs. 30
600 ml pet bottle: Rs. 36
1.25 l pet bottle: Rs. 50
1.5 l pet bottle: Rs. 55
2 l pet bottle: Rs. 75
Key Pricing practices:
- Skimming: Prices start high and slowly drop over time. Premiums are charged and generally new, unique or luxury products adopt such a pricing. It is a risky practice when there is strong competition or low perception of value.
- Market pricing(Going rate pricing): Firms adopt prices based largely on competitor’s prices. A “follow the leader” practise set to preserve stability. Activity is focused on product, distribution and promotion.
- Penetration Pricing: Low prices (often lowest in the category) are adopted to stimulate market growth. Low prices discourage actual and potential competition. It can result in low profits and undermine brand image or long term profit if there is a high market share.
Alternative Pricing Practices:
- Cost-plus: Cost of manufacturing plus small margin
- Target return: To achieve specific percentage profit(margin).
- Breakeven: Price at which revenue covers cost.
- Perceived value: What customers will pay based on their perceived value of the product.
- Value pricing: A fairly low price is charged for a high quality offering.
- Sealed bidding: Generally b2b/real estate purchases.
- Auction-type: Electronic marketplaces use this. 3 kinds: English auctions, Dutch auctions, sealed bids.
Thums Up pricing practise
Rural market:- Cost-plus(Penetration) Pricing:With low prices and smaller bottle units Thums up operates in an untapped market which is geographically dispersed and has households of low income.
Urban Market:- Value Based pricing: To consolidate position in tier 1,2 cities with higher income households. Brand loyalty is to be built upon.
Mature Market:- Value & Competition based pricing: A mature market has limited growth opportunity. Competitors monitor each other’s pricing, quality and value offers.
Following factors influence the pricing strategy of Thums Up:-
- Prices are set according to the product demand of public.
- Prices should be that which gives the company maximum revenue.
- Price shouldn’t be too low or too high than the price competitor is charging.
Session 10: Distribution
Hub And Spoke: Thums Up employs a Hub and spoke distribution model. Stock is transported from bottling plants to hubs and then transported to spokes in cities and small towns. Retailers purchase stock from spokes.Large and medium commercial vehicles are used to transport stock. Hub and Spoke distribution is also known as point to point distribution.
Various Channels Of Distribution:
COBO: Company Owned Bottling Operations operating directly under the company. Thums Up has 59 bottling plants under Coca Cola in India, amongst which Hindustan Coca Cola Beverages (P) Ltd. is the largest.
FOBO: Franchise Owned bottling operations. e.g: Brindavan Agro Industries (P) Ltd. in Up, Kandhari Beverages Ltd. in Amritsar.
Warehouses: Company owned warehouses cover respective territories. Stocks are sent from bottling plants to these warehouses from where they are sent to the C & F centers and distributor point.
C&F centers: They are owned by company, Carry and forwarding agents or salesmen are on company payroll.
Wholesalers: Smaller centers and distribution points, they get their stock directly from company or franchise. They are individual points of sale and also ha
Retailers: Large chain retailers (Big Bazaar), Small individual retailers (mom n pop stores). These get stock from all other channel members.
Salesmen/C&F Agents: Visit outlets, handle cash, negotiate discounts and communicate schemes.
Slums: Smaller units than wholesalers within deep penetration regions.
Distribution Metrics
- No. of outlets.
- Share in shops handling.
- Weighted distribution.
- Distribution gains.
- Average Stock value.
- Stock cover in days.
- Out of stock frequency.
- Share of shelf.
- Average sales per point of sale.
Distribution Programming
Contractual VMS(Vertical Market System) consisting of independent firms at different levels of production and distribution are in place and integrate their functions on a contractual basis to maximize sales impact. These VMS come in the following three types:
- Wholesaler-sponsored voluntary chain: For standardizing selling practices and prices.
- Retailer Cooperative: A point of contact with the customers. Retailers get stock from all other channel members.
- Franchise Organizations: Independent businesses are licensed to sell company’s products on meeting specified conditions of sales and service.
Session 11: Marketing Communications
Marketing Communications Mix:
1. Advertising: Thums Up employs several mediums for promotion. 
Print
(Image credits: http://www.mbaskool.com/hwdphotos/uploads/64/17/mfy2tbov4yzwx8.jpg)
Broadcast
Image Credits: http://economictimes.indiatimes.com/photo/17112405/thums-up.jpg
Broadcasts include TV commercials and Radio jingles.
Image Credits: exchange4media.com OOH Advertisng
Outdoor Agency: MOMS Outdoor Media Solutions Place:Lucknow
2. Sales Promotion:
Image credits: Mobile Marketing Association
Unique codes are issued which consumers can send over SMS to win prizes. Sales promotions can be seen near points of sales such as Vizi coolers, display racks and freezers.
3. Events and experiences:
Company sponsored activities and programs designed to create a brand-customer interaction.
Image credits: coca-colaindia.com
Being Veer is a fund-raising and awareness campaign for people with disabilities launched in 2014. The initiative was aimed at providing job opportunities to 1000 differently abled people. This campaign was launched by Thums Up, Being Human Foundation, CNN-IBN and American Indian Foundation.
4. Pr/Publicity: Endorsements by celebrities, Word Of Mouth, Endorsements in Sporting events, word of mouth publicity, partnership with “Being Human” a charitable foundation by actor Salman Khan.
Imagecredits: Vjmediaworks
Thums Up installed two 25 ft tall Dhaki statues at Deshopriya Park and Lake Town Adibashi Brindo (Kolkata) as a part of Amader Pujo campaign from 18th September 2013 to 20 October 2013. RJ’s of RadioMirchi urged customers to contribute bottles, cans and crowns to
5. Direct Marketing: Use of mails, calls, fax and email to reach consumers directly. Partnerships with restaurants, multiplex cinema theaters, etc.
6. Interactive Marketing: Online activities and programs designed to engage customers and prospects. Various online platforms like Facebook, Twitter and Youtube are mediums where Thums Up carries out promotions that reach the target
7. Word of mouth: Positive referrals that would induce new customers to make their first time purchase and old customers to make repeat purchase.
8. Face to face selling: Salesman interact with consumers or retailers to communicate promotional offers and sell the product.
Besides these Thums Up leveraged Salman Khan’s fan following by:
- Building on the brand’s core philosophy by urging the youth to push boundaries, pave their own path and to unleash their inner potential.
- Conceptualized by Leo Burnett and directed by Julien Troussellier of Cutting Edge Pictures is all set to roll out on 14th March, 2014.
- Action star and southern superstar Mahesh Babu to features in the south version of the campaign.
Top Line vs Bottom Line promotions:
Top Line promotions are intented towards mass consumers using mass media. TV ads, banners, events/festivals sponsorship are certain Top Line promotional activities carried out by Thums up.
Image Credits: afaqs.com
Below the line promotion includes promotion schemes, publicity material, point of sale display. These kinds of promotional activities are done by company from zonal managers, plant managers, sales managers and area sales managers. Sales and area sales managers carry promotional activities for cities.
Point Of Sale
Consumer Oriented Sales Promotion vs Trade Oriented Sales Promotion
Consumer oriented sales promotion involves Shelves, positioning of product and under the crown schemes.
Trade Oriented Sales Promotion offers discounts to retailers and stores.
Steps in Developing Effective Communication
- Identifying target audience : Section A,B,C Households. Males:20-29 years. (Upper most segment of the consuming class-A1,A2 and B1. Middle class: B2 & C.)
- Channels: Selecting a channel from Internet, Print, Points of sale, radio, TV and OOH advertising.
- Objectives: Persuading retailers to carry higher levels of inventory, encouraging off-season buying, offsetting competitive promotions, building brand loyalty and gaining entry in new markets are some major objectives of promotional activities of Thums up.
- Pricing:
- Deciding on media mix: Selecting which
- Measuring results.
- Managing integrated marketing communication:
AMA defines Integrated Marketing Communications (IMC), as a “planning process designed to assure all brand contacts received by a customer or prospect for a product, service, or organization are relevant to the customer and consistent over time.”
5 M’s of Advertising
Mission: Sales Goals and Objectives
Money: Product Life Cycle, Market Share and consumer base, Competition & Clutter, Advertising frequency, Product substitutability.
Message: Message Generation, Message Evaluation and Selection, Message execution, Social Responsibility review.
Media: Reach, frequency, Impact, Major Media Types like newspaper, television, radio, magazines, outdoor, and Internet. specific media vehicles(for newspapers the cost will be based on per column cm) , media timing, Geographical media allocation,
Measurement: Communication impact, Sales Impact.
Relationship between Reach, Frequency and Impact
- Reach(R): No. of different persons or households exposed to a particular media schedule at least once during a considered time interval.
- Frequency(F): No. of times within the specific time period that an average person or household is exposed to the message.
- Impact(I): The qualitative value of an exposure through a given medium.
- Total number of exposures(E): E=RxF. This is also known as GRP(Gross Rating Point)
- Weighted number of exposures (WE): WE=RxFxI
Session 12: Sales Management:
Sales for Thums Up is closely monitored by a sales manager. The roles and functions of a sales manager is to provide tools and leadership to regulate sales. Sales manager also handles a team of account managers who ensure shelves are filled with the product and have the right display. The function of ensuring seasonal and thematic displays are up during festive occasions also lies with the account managers.
Sales managers also visit stores to ensure good working relations, carry surveys, rate them, communicate special offers and give feedback to retailers and account managers. Sales managers require a major portion of their work to be carried out on field. Besides filing paper work, rapport building is essential for sales team which facilitates extra coolers or displays.
Sales is the completion of a commercial activity. For a soft drink the commercial activity extends from integrating flavouring elements and bottling operations. Newer distribution points are acquired which basically means closing the sale and getting a contractual agreement.
Sales objectives:
- Sales targets (This is more of a regressive model.)
- Achieve market share targets.
- Manage dealer network.
- Organise sales training.
- Handle consumer complaints and grievances.
- Effectively cover market.
- Manage sales promotion campaigns.
Cashflow -> Inventory ->Distribution (Refurnish)-> Customer (Sell) is the cyclic chain of sales operation.
Session 13: STP(Segmentation, Positioning, Targeting):
Market segmentation is done to group a customers with similar wants & needs. 4 broad groups of geographic, demographic, psychographic and behavioural segmentation are developed. Customer classification is also done on the basis of activity, opinion and interests.
SEC(Socio Economic Classification) Classification is based on 2 factors:
1) Education of chief earner of a household.
2) No. of consumer durables owned by family. (A list of 11 household items)
There are 12 grades in the system.
Variables for segmenting in business market:
| Demographic |
Operating Variables |
Purchasing Approaches |
Situational Analysis |
Personal Characteristics |
| Industry area |
Technology |
Purchasing function organisation |
Size/Order |
Buyer-Seller similarity |
| Company size |
User/Non-user |
Power structure |
Specific application |
Attitude toward risk |
| Location |
Customer capabilities |
Nature of existing relation. |
Urgency |
Loyalty |
| |
|
General purchasing policies |
|
|
| |
|
Purchasing criteria |
|
|
Levels of segmentation:
- Customisation
- Individuals as segments
- Single segments
- Multiple segments
- Full market coverage
- Mass market.
Positioning alternatives are of the following 3 types:
- Strengthening current position.
- Search for a new unoccupied position.
- Deposition or reposition the competition.
Positioning Strategies:
- Attributes of product. (Strong Cola)
- Benefits (Taste)
- Usage (Outdoor/Indoor)
- Activities (Charity work in association with Being Human Foundation.)
- Personalities (Akshay Kumar, Mahesh Babu, Salman Khan)
- Origin (Flavoring and bottling carried out in India)
- Competitors (Pepsi, Coca-cola, )
- Product Class (Non-alcoholic Carbonated bottled drink.)
Thums Up’s positioning alternative is strengthening its current position in Indian market.
Segmenting strategy would be based on the following 3 classifications:
- Undifferentiated marketing(Entire marketing is covered by 1 offer.)
- Differentiated (Different offer for different segments.)
- Concentrated marketing (Focus is on 1 segment.)
Market targeting evaluates market segments on the basis of segment attractiveness and business strengths and considers parameters in segmentation and positioning.
Session 14: BRANDING:
Branding is done on a core attribute and which shows consistency. Thums Up’s core attribute is a strong, masculine and adventurous experience which is maintained by the brand.
A name becomes a brand when consumers associate it with a set of tangible/intangible benefits. There is mutual identification and selection of the product, commitment to a long term relationship by various promotion activities entwined with festivals. The benefits for Thums Up incude:
- Less cost for searching for an alternative.
- Lower purchase risk to consumer.
- Symbol of quality.
- Symbolic device. (Differentiated features/ USP)
- Brand value.
Branding not only helps as drivers of growth but they also make a promise of value and connect consumer to product and the company at an emotional level. It offers the following propositions to the brand:
- Means of competitive advantage.
- Legal protection of product features.
- Satisfied and happy customers.
- Means of Profits.
Strong branding is a major driver of stakeholder value. Higher customer loyalty depends on using all marketing activities to build equity. Product quality, design, features, cost and price are integrated in building equity. Premium pricing works for special offers and festive offers.
Tangible Characteristics for Thums Up are Capacity Variants, Price differences and packaging while intangible characteristics are on an emotional level.
Key Brand Management guidelines:
- Affix products/services.
- Decide on license agreements.
- Select proper license partners.
- Establish and maintain brand.
- Integrate BM strategy into product development & launch activities.
- Enforce key provisions through license agreements.
- Maximize strategic advantage of brand.
- Maintain consistency between Brand Strategy & Overall business tools.
At every level first product strategy is considered and integrated with brand management.
Session 15 : ANALYZING BUSINESS MARKET:
Business market can be broadly classified into B2B and B2C models.
Thums Up is rather unique as it has characteristics of both B2B and B2C models. The product is based on needs and wants which lends a cyclical lifecycle. It is linear in terms of institutional selling in distribution channel and non-linear in hub and spoke model. Consumer orientation is based on preferences, desire and is subjective. Both Macro and social cultures are incorporated with the brand.
Product market drivers are based on capability and lifestyle with a focus on consumer’s wants.
Drivers for Brand preference:
- Integrity
- Competence
- Continuity
- Caring Service
- Character
- Imagery
| Functional benefits |
Relationship benefits |
Process benefits |
| Product and performance attributes |
Value based on personalised service |
Ease of access to product information |
| Value |
Emotional relevance |
Broad product selection |
| Quality |
Information sharing that creates value |
Simplified/assisted |
Session 16: Sustainable Marketing:
Sustainable marketing is the practice of developing and promoting products or services that meet consumer and business user needs utilizing society’s natural, human, and cultural resources responsibly to ensure a better quality of life now and for future generations in a way that differs from traditional market.
Thums Up does not show children drinking any of products and do not directly target children younger than 12 in our marketing messages or by advertising in children’s programming. Thums Up doesn’t engage in promotional activities in primary schools.
In June 2011, Coca Cola, the parent company of Thums Up joined other members of The Consumer Goods Forum in adopting three resolutions to provide consumers with choices and information that empower them to make decisions to support a healthy life. The 3 resolutions are:
- Provide consumers with choices and information that empower them to make decisions for a healthy life.
- Encourage a culture of prevention by promoting active, healthy living for all and by engaging with other stakeholders to accelerate and increase the impact of such efforts.
- Monitor and learn from efforts and report on progress.
Retailers and manufacturers are encouraged to impose further implement self-regulatory tools to support healthier diets and lifestyles.
In addition to working with peers in The Consumer Goods Forum, Coca-Cola is also a founding member of the Healthy Weight Commitment Foundation, a multiyear effort by the U.S. food industry to fight obesity by reducing 1.5 trillion calories annually by the end of 2015 through new lower-calorie options, reduced calorie content of current products and reduced portion sizes of existing single-serving products.
To curb harmful environmental emissions Coca Cola is in close relationship with bottling partners, NGOs, governments and others in addressing our greenhouse gas emissions and encouraging progress in response to climate change. For the Caring for Climate (C4C) Business Forum, convened by the U.N. Global Compact during COP19 in Warsaw, the annual U.N. Climate Change Conference (Conference of Parties) in 2013 Coca-Cola introduced a statement from the Refrigerants, Naturally! business group stating support for a proposed phase down of HFCs through the existing mechanisms of the Montreal Protocol. 
Competitors(Augmented Product, Basic product)
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