Sustainable/Holistic Marketing

Healthy long term growth for a brand requires that the marketing organization be managed properly. Holistic marketeers must engage in a host of carefully planned, interconnected marketing activities and satisfy an increasingly broader set of constitutions. They must also consider a wider range of effects of their actions. Corporate social responsibility and sustainability have become a priority as organizations grapple with short term and long term effects of their marketing. Some firms have embraced this new vision of corporate enlightenment and made it the very core of what they do.

The parent company of Kissan i.e. HUL shows more interest in CSR also as:

From 2004 to 2008 it has reduced the emission of Carbon di-oxide by more than 25% in the manufacturing.

HUL follows 5 R strategies to deal with the Green House Gases (GHG):

• Reduce
• Re-Use
• Recycle
• Recover
• Renew

HUL uses Agricultural wastages as the fuel (Ground nut shells, bagasse, saw dust, Coconut shells, cashew etc)

 Kissan has launched a unique marketing campaign, Kissanpur, which encourages children to plan and grow tomatoes and participate in an online contest. The campaign is aimed to bring alive the proposition of Kissan ketchup of ‘100% Real Tomatoes’ while also engaging the kids in a fun and interesting manner.

Segmentation, Targeting and Positioning (STP) and Marketing Strategies

Any Brands creates its marketing strategy based on expected customer behavior. And in order to know the customer and its expected buying behavior and use it in forming the right marketing strategy, a proper process of segmenting, positioning and targeting is needed

A market segment consists of a group of customers who share a similar set of needs and wants. The marketer’s task is to identify the appropriate number and nature of market segments and decide which one(s) to target.

The major segmentation variables are:

Geographic segmentation:  Kissan, as it’s a part of HUL, which has a huge distribution setup which helps it to reach the masses and rural areas better than the other brands present in the market. It has both width and breadth in marketing.

Demographic segmentation: Primarily for Kissan jam and jelly the company considers children to be the most lucrative customers. Kissan ketchup has a different take on the type of customers.

Behavioral segmentation: Kissan provides special offers during festivals to attract more people towards their product. Offers in special social festival allow a large number of consumers to experience and enjoy the Kissan products

Proper Targeting is very important in order to make the brand successful, it’s not only about targeting the right people but also targeting them in the most appropriate way. So far Kissan Jam has been very successful in targeting the right consumers. However they should further develop on their communication so that the risk of threat from new entrant is restricted and therefore gain a full market coverage.

 Positioning is done after segmentation is done and target markets have been identified, the brand needs to position its products/ services in the most suitable manner to the product/service as well to the target consumers. Positioning is done by following POD and POP methods, in POD (Point of difference) you create a product or service in an existing category but it’s different from the other offerings by competitors and in POP (Point of Parity) you create a product or a service which is very similar to that of the market leaders offering to the consumers. Kissan Jam, follows POD method and has always created a unique taste for its consumers which can be easily identified and along with the introduction of the Squeezo, which is an upside down plastic bottle and is the first of its kind in the country. The packs innovative format is much more convenient to use versus a glass bottle. The new pack is easy to hold and squeeze.The launch was led by the Communication idea of “khud banaao khaana dilchusp” . It has received an awardfor the most innovative packaging.

Kissan was the leader in the ninetees unless Maggi overtook it after that. Maggi is the biggest competitor of kissan in this segment other than Heinz and other local brands.Maggi has the current market share of 32% with Kissan at 27% and the remaining is shared by Heinz and other local brands. Kissan lost its position due to its over confidence and neglecting the brand and quality. But now it has again started to take positive and aggressive measures to regain its position of No.1 in the market by modifying its marketing and strategy. It has launched sachets of jams to add new and small customers to this segment and who can buy according to their demand. Kissan is the only company to have sachet in jam category.

 Kissan is the market leader in the Jam Segment with 65% of market share. The competitors of Kissan in this segment are Druk and other local competitors. Kissan jams are available in various flavours and sizes. By doing so, a customer has more choice.

The brand realized that it wanted to enter a new market and Kissan wanted to tap that section of the society with a product that would help the brand to acquire a part of that market. Butter has saturated fats, monotonous taste, high calories, whereas jam is sweet. For health conscious people, jam was any day a better choice.

Organisational Buying Behaviour

Organization buying is the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.

Major stages of Industrial Buying Process are:

Hindustan Unilever Ltd (HUL), India’s largest consumer packaged goods company, has formed partnerships with 3,500 farmers in Karnataka and Punjab to grow tomatoes and fruits to sharpen focus on its foods business and promote sustainable agriculture in the country.

Agriculture and forestry being a large part of its raw materials, HUL believes that sustainable sourcing is important for its business and brands while sourcing locally from India would give it better control on quality and supply.

Consumer Behaviour

Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. 

In case of Kissan Jam, the consumer behaviour is influenced by the commercials as well as peer groups and friends. The main target consumers are the mothers who wants a healthy breadspread for their child which is tasty too.

Sales Management

Sales management is a business discipline which is focused on the practical application of sales techniques and the management of a firm's sales operations. It is an important business function as net sales through the sale of products and services and resulting profit drive most commercial business. These are also typically the goals and performance indicators of sales management.

For Kissan, sales are typically in the retail stores. The consumer just has to ask for that particular Kissan product in the retail shop or if its a super market he just has to locate it and buy it.

Distribution Decisions

HUL’s products are distributed through a network of 4000 re-distributors, stockist covering 6.3 million retail outlets reaching the entire urban population and about 250 million rural consumers. 

There are 35 C&FA’s(carrying and forwarding agents) in the country who feed these redistribution stockists regularly. The general trade comprises grocery stores, chemist, wholesale, kiosks and general stores.

Promotion (IMC/ATL/BTL)

Integrated Marketing Communications (IMC): Marketing Communications are the means by which firms attempt to inform, persuade, and remind consumers – directly or indirectly – about the products and brands they sell and IMC is a marketing communications plan that evaluates the strategic roles of a variety of communication disciplines and combines these disciplines to provide clarity, consistency, and maximum communication impact.

      The two segments of Marketing Communications are;

      1.     ATL (Above the Line) Communications; Caters to Mass Market by using Mass media like television, cinema, radio, print, Telephone, Internet, Out-of-home etc.

       2.     BTL (Below the Line) Communications; Caters to Niche Market by using Design, Direct Marketing (Telemarketing, mails, catalogues etc.), Public Relations, Sales Promotions, Buzz (Word of Mouth), Sampling, Relationship Marketing, Packaging etc.

      Media Selection is finding the most cost-effective media to deliver the desired number and type of exposure to the target audience. It is decided based on Reach, Frequency and Impact of any particular media.

F    From the very beginning, Kissan introduced a new theory toadvertise their product ‘Kissan Jam’.The theorywas called ‘Law of appetite’ . Then it came up with the new idea headlined as ‘Roti disappears with KissanJam’. This promotion earned much popularity among the kids. 

     

      The two pictures below depict the evolution of Kissan Jam advertisement 

 

t

    

     Sales promotions are non-personal promotional efforts that are designed to have an immediate impact onsales. Media and non-media marketing communications are employed for a pre-determined limited time toincrease consumer demand stimulate market demand or improve product availability. In 1997, Hindustan Lever Ltd (HLL) had undertaken a new promotion drive aimed at making its Kissan brand leading Indian food brand. Old products were  phased out and contemporary products and ethnic flavours were introduced. As a result, HLL recorded a 40 percent growth in sales between January-May1998. When Rahul Dravid was in his peak form, he endorsed the product using his nick name ‘JAMMY’.

Pricing Strategies

Pricing is the process of determining what a company will receive in exchange for its products.
Traditionally Price has been a major determinant of a buyers choice.

Consumer Buying Psychology: 

Reference Prices:  Consumers have fairly good idea of the price range of a product, but rarely do they recollect the exact price. When examining a product, consumers often employ Reference Prices, where the compare the observed price to an internal reference price.

Price- Quality inferences: Many consumers use price as an indicator of quality. Some brands adopt exclusivity and scarcity as a means to signify uniqueness and justify premium pricing. For ex: Watches, perfumes etc.

Price cues: Many sellers believe that prices should end in an odd number because for example: many customers see an amplifier priced 2999/- in the range of 2000/- rather than rounding it off to 3000/-

But prices ending in 5 or 0 are easier for the customer to process and retrieve from memory.

Also the sign of SALE next to a price is shown to spur demand if not over done. Even limited availability (3 days only) is seen to have spurred sales.

Pricing of Kissan Jam

At the time Kissan was formed, consumers had limited purchasing power. Thus Kissan adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money.Despite competition, it ensured that the product mix and the sequence in which Kissan introduces its products is consistent with the core philosophy of providing jam at a basic, affordable price to appeal the common masses. This helped Kissan Jam to create its brand image in the household sector of the society.

Therefore the current price offered are:

-      15 gms Sachet- Rs. 2

-      70 gms Squeeze tube- Rs. 24

-      100 gms Tub- Rs. 24

-      200 gms Bottle- Rs. 48

-      500 gms Bottle-Rs. 107

Branding and Brand Management

A brand is a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."
Branding is the process involved in creating a unique name and image for a product in the consumers' mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers.

Elements of Branding
In marketing language, Branding elements are the trademark able devices that identify and differentiate the brand from the competition. For Kissan Jam, the brand elements that encompass are:

Brand Name: Kissan 

The origins of the brand go back to 1935. Trains passing through Punjab made a stop at a processing unit where farmers sold freshly picked fruits and thus locals started calling that spot Kissan. The name is short and simple and very easy to remember, hence being Memorable and connecting with the consumers. 

Brand Logo


The logo consist of the word Kissan, over the years the font changed but the logo remained the same. The logo is red in colour with white background or in white colour with red background which gives the essence of freshness of fruits and also symbolises the sign of love and care.

Brand Slogan

‘Just Lagao, Kuch Bhi Khao’ is the recent tagline associated. Kissan acts as a catalyst, easing stressful moments at the dining table. With Kissan, good food is loved not shoved!

Kissan wants to be the brand which will help dissolve tension between mother and the family during informal good food moments. Kissan acts as a catalyst, easing stressful moments at the dining table.

Brand Promise

The message clearly states about quality and superior taste. It also clearly tells about being ready to cater to the whole country, thus generating trust

Service and Services Marketing

The world economy nowadays is increasingly characterized as a service economy. This is primarily due to the increasing importance and share of the service sector in the economies of most developed and developing countries.

No longer are goods considered separate from services. Rather, services now increasingly represent an integral part of the product and this interconnectedness of goods and services is represented on a goods-services continuum.

The American Marketing Association defines services as - “Activities, benefits and satisfactions which are offered for sale or are provided in connection with the sale of goods.”

The defining characteristics of a service are:

• Intangibility: Services are intangible and do not have a physical existence. Hence services cannot be touched, held, tasted or smelt. Also, it poses a unique challenge to those engaged in marketing a service as they need to attach tangible attributes to an otherwise intangible offering.
• Heterogeneity/Variability: Given the very nature of services, each service offering is unique and cannot be exactly repeated even by the same service provider. While products can be mass produced and be homogenous the same is not true of services. In the case of Kissan Jam, each has different way of having it, some might spread it on a roti while another might spread it on a biscuit and thus it characterizes Variability.
• Perishability: Services cannot be stored, saved, returned or resold once they have been used. Once rendered to a customer the service is completely consumed and cannot be delivered to another customer. eg: A customer dissatisfied with the services of a barber cannot return the service of the haircut that was rendered to him. At the most he may decide not to visit that particular barber in the future. In the case of Kissan Jam, if the customer doesn't like it, probably once the packet opened cannot return it back to the shop-keeper, probably from the next time would not purchase this brand

The above was the generic view on services. But in my case of Kissan Jam, the service isn't much, its just about delivering the right flavour and consistently maintaining it.

Also, if we see the jar of Kissan Jam, there is usually a mail id or phone number given, in case there is any problem or spoilage, we can contact that. This is a kind of service. 

Product Mix

Product mix, also known as product assortment, refers to the total number of product lines that a company offers to its customers. It may be defined more narrowly in specific cases to mean only that set of products in a particular product line or a particular market.  It is basically the variety of products the company has to offer.

The four dimensions to a company's product mix include width, length, depth and consistency.

Width.

The width of a company's product mix pertains to the number of product lines that a company sells. For example, if a company has two product lines, its product mix width is two. Small and upstart businesses will usually not have a wide product mix. It is more practical to start with some basic products and build market share. Later on, a company's technology may allow the company to diversify into other industries and build the width of the product mix.

Length

Product mix length pertains to the number of total products or items in a company's product mix. For example, ABC Company may have two product lines, and five brands within each product line. Thus, ABC's product mix length would be 10. Companies that have multiple product lines will sometimes keep track of their average length per product line. In the above case, the average length of an ABC Company's product line is five.

Depth

Depth of a product mix pertains to the total number of variations for each product. Variations can include size, flavor and any other distinguishing characteristic. For example, if a company sells three sizes and two flavors of toothpaste, that particular brand of toothpaste has a depth of six. Just like length, companies sometimes report the average depth of their product lines; or the depth of a specific product line.

Consistency

Product mix consistency pertains to how closely related product lines are to one another--in terms of use, production and distribution. A company's product mix may be consistent in distribution but vastly different in use. For example, a small company may sell its health bars and health magazine in retail stores. However, one product is edible and the other is not. The production consistency of these products would vary as well.

In case of Kissan Jam, the product depth is 30, as they have six different flavours and are available in five different sizes.

Product Life Cycle

A company's positioning and differentiation strategy must change as the product, market and competitors change over the Product Life Cycle (PLC). To say that a product has a life cycle is to assert four things:

1. Products have limited life

2. Product sales pass through different stages, each posing a different challenge and opportunity.

3. Profits rise and fall at different stages of life cycle.

4. Products require different strategies in different life cycles.

The process wherein a product is introduced to a market, grows in popularity, and is then removed as demand drops gradually to zero.

There are four stages in the product life cycle: introduction, growth, maturity, and decline.

Introduction

After all research and development has be done it is time to launch the product and begin its lifecycle. The introduction stage of the product life cycle is when the marketing team emphasizes promotion and the product's initial distribution. Often the product will have little or no competitors at this point. Nonetheless, sales may remain low because it takes time for the market to accept the new product. At this stage of the life cycle, the company usually loses money on the product.

Growth

In the growth stage of the product life cycle, the market has accepted the product and sales begin to increase. The company may want to make improvements to the product to stay competitive. At this point, there are still relatively few competitors.

Maturity

In the maturity stage of the product life cycle, sales will reach their peak. Other competitors enter the market with alternative solutions, making competition in the market fierce. The company that introduced the new product may begin to find it difficult to compete in the market.

Decline

In the decline stage of the product life cycle, sales will begin to decline as the product reaches its saturation point. Most products are phased out of the market at this point due to the decrease in sales and because of competitive pressure. The market will see the product as old and no longer in demand.

There is no set schedule for the stages of a product life cycle. Differences will occur depending on the type of product, how well it is received by the market, the promotional mix of the company, and thof the competition.

 In 1947, Mitchell brothers of UK set up a manufacturing unit in Bangalore for Kissan and India’s first fruit and vegetable processing unit was set up. Therefore Kissan has the largest market share in jams with Rs 176 crore of the Rs 264-crore market. Therefore it is in the Maturity stage of the Life Cycle.

Competition Analysis

Competitor evaluation not only gives more insight into the strategies and goals of the competition but it also provides a bird’s-eye view of the trends and future of the industry in which the firm operates.  Competitor analysis begins with identifying present as well as potential competitors. It portrays an essential appendage to conduct an industry analysis.

Michael Porter in Porter’s Five Forces Model has assumed that the competitive environment within an industry depends on five forces.

These five forces should be used as a conceptual background for identifying an organization’s competitive strengths and weaknesses and threats to and opportunities for the organization from it’s competitive environment.

·         Threat of new potential entrants: The new entrants will have a tough time to overcome the barrier as there is tough existing competition. This might affect the survival of the new entrant. Since Kissan jam is already so much dominant into the market, the new entrant might face problems in establishing itself.

·         Threat of substitute product/services: There are few other existing brands which have similar products but their market share is not as strong as Kissan. Honey stands to be a strong contender in this category since few health conscious people might opt for honey which has healthier composition.

·         Bargaining power of suppliers: Since Kissan jam is a FMCG product therefore it has enough suppliers who cannot break the flow, so this segment remains quite attractive.

·         Bargaining power of buyers: Customers can force down prices, demand more service or better quality, and even pit competitors against one another. But again Kissan jam having very limited competitors, it faces very rare scenario of the bargaining power of buyers. Though bulk purchase from the supplier might force down the price for end customers.

·         Rivalry among current competitors: There are few existing competitors like Sil jam, Mala jam, Mapro jam, Druk jam. These leads to price wars and ad wars. But Kissan stands out as it has strong brand name, excellent advertising and visibility, good product distribution and availability and lots of flavours and varieties. 

     Competitors should be analyzed along various dimensions such as their size, growth and profitability, reputation, objectives, culture, cost structure, strengths and weaknesses, business strategies, exit barriers, etc.

Buying Decision Process

Successful marketing requires that company fully connect with their customers. A customer's buying behavior is influenced by several factors:

• Cultural, Social and Personal factors: The cultural factors exerts the broadest and deepest influence. Culture is the fundamental determinant of a person's wants and behavior. Kissan jam has closely attended to cultural values and have seeped into the breakfast table. With the constant urbanisation people are becoming more inclined towards a swift and healthy breakfast. Therefore it has a very strong foothold in this segment. the younger generation too is quite familiar with the brand and tends to recognize it well over others. The same can be said for the social factors.

In case of the personal factors, the advertisements are mostly targeted towards the kids and the youths, inspite of this, kissan jams are well associated with all age groups belonging to varied socio-economic group and occupations. Thus they are successful in establishing a "connect" with their consumers.

• Psychological Processes: Though Kissan jam is a FMCG product, still a good amount of thought goes while purchasing it. It has to enter the customer's consciousness and combines with certain consumer characteristics to result into decision process and purchase decision. 

Maslow's theory sought to explain why people are driven by particular needs at particular times.

Emotions and memory also plays significant role in the buying decision. 

• The buying decision process: The Five stage Model

Problem Recognition: Marketers need to identify the circumstances that trigger a particular need by gathering information from a number of consumers. The need of a healthy and tasty breadspread for a swift breakfast. This is where the customer must have felt a need where kids would love something so colourful with varied fruity flavours to savour their tastebuds. The different squeezy tubes that were introduced lately had the advantage of being an easy one to carry along.

Information Search: Kissan is already a very well established brand and one of the biggest player of its sector, therefore I don't feel there is much need for information search. Moreover the information is very easily available which will lead to quick decision making.

Evaluation of Alternatives: There are limited players in this market along with some local products. Already being a well recognised brand, it has imbibed certain belief in its consumers which contributes to a positive attitude towards the brand and its products. It offers a wide range of choice in terms of flavours and quantities. 

Purchase Decision: The consumers always intend to buy the most preferred brand, and in the above stages the consumer has already built a perception about the same brand. With the presence of different packagings in various quantities in mouthwatering flavours and different pricing options, it will thus help the customer to make a final decision an buy the product.

Postpurchase Behaviour: Marketers must monitor postpurchase satisfaction, postpurchase actions, and postpurchase product uses and disposal. If the consumer is satisfied and delighted then they would come back to the same product again and will favourably about it. So it has to maintain the same quality and taste because consistency also plays an important role in customer retention. If any query or complaint comes along, it should be taken care of with immediate effect to hold the consumer's belief and trust. 

Customer Value

Kissan jams mainly target kids and modern youth who are found to make their food tastier and healthier and this is also beneficial for all age groups. A large target market for kissan jam is people who are paying guest and hostellers.

•       Kissan Jams are the leaders of their segment
•       Pioneers in food processing
•       Value for money
•       Varied flavours

They come in six exciting flavours:

-      Pineapple Jam

-      Mixed Fruit Jam

-      Mango Jam

-      Orange Marmalade

-      Strawberry Jam

-      Black Current Jam 

• ·        Easily available
• ·        Available in various quantities

                    These are available in different sizes to cater different needs:

-      15 gms Sachet

-      70 gms Squeeze tube

-      100 gms Tub

-      200 gms Bottle

-      500 gms Bottle

The squeeze tubes are the latest entrant and they are quite convenient to carry while travelling as you just squeeze the jam on the bread. 

• ·        The taste is unique as they are made up of 100% real fruits

Kissan Jam - Introduction

Kissan Jam

The brand Kissan is as old as independent India. It originated in 1935. Today, Kissan is more than just a brand,  it’s the trust of millions of Indian mothers when it comes to making their kids eat & grow up happily. Kissan was  acquired by Brooke Bond in 1993 from UB group and then it separated from Brooke Bond and formed an independent brand under Hindustan Unilever Limited. In the year 2000 the brand was worth Rs 400 crores, becoming a market leader in Jams, Squashes and Ketchup.

Either liven up bread or parathas, blend with milk for a milkshake,add to kheer or put a dollop on icecream for a sundae, the Kissan Jam is there for every occasion.

Kissan has the largest market share in jams with Rs. 176 crore of the Rs. 264 crore market, it commands a market share of 65% in Jam.