"Percentage of Profitability should be of paramount importance."
P's of Marketing
-> Product
-> Price
-> Place (Distribution)
-> Positioning
-> Promotion
-> Packaging
Distribution
-> B2C
-> B2B
=> B2C
- Market Prioritisation (where your brand is first launched in small area, then move on to a state and then create a PAN distribution network, much like the Unilevers and ITC)
- Distribution (Primary)
- Retailers (Secondary)
- Consumers (Tertiary)
Multibrand and Multibrand - Multiproduct are the two kinds of retailers.
4 Taxes {Central Excise Tax; Sales Tax; Octroi; VAT}
9/10 Brands today launch their products in a phased manner.
East is the smallest market for any product because there are 7 North - Eastern States out of which only Assam will be addressed owing different factors.
Roll Out will be done likewise => City Wise => Zone Wise => State Wise => National.
"Appointment of Distributor as my first partner is key"
- Exclusive Outlets (also known as flagship store) is fairly a new phenomenon.
- Modern Trade (Large Format Retail (LFR) Stores : Shoppers Stop, Big Bazaar)
- Online
- Direct Marketing
All of the above are the channels of selling/General Trade.
"With online, the caveat is High Involvement-High Impact and High Product"
"Marketing make plans as to how to sell"
"Marketeers are salesmen, but salesmen are not marketeers"
B2B - Direct/Institutional, it's usually bulk order; B2B in any business automatically becomes a key account.
-> Company Owned Company Operated (COCO)
-> Franchisee Owned Franchisee Operated (FOCO)
-> Company Owned Franchisee Operated (COFO)
With COCO => Everything is under control but price/cost of doing so is high.
FOFO => control takes a hit, but it is the fastest to expand and the cheapest way to do so.
Sales Planning
-> Setting up annual targets (sales) = Financial Year
-> Quarter wise targets (Q1 - Q4)
- Volume
- Value in terms of INR/Year
-> Monthly target (M1- M12)
Total Revenue = Top Line
Expenses are two kinds
- Fixed
- Variable
Total Revenue - Expenses = Gross Profit - Taxes = Net Profit
Sales Revenue
Multiplex
- 4 Auditoriums
- 400 Seats
- Priced at 100/- INR
- 10 Shows
One Day (assuming all shows are house-full) would invariably mean 1600*100*10 = 16000000
Sales target ill have to drawn/planned like the following:
M1 -M3
-> 50% Occupancy * 5 shows/day
-> 70% Occupancy * 3 shows/day
-> 90% Occupancy * 2 shows/day
Sales Projections will also have to take the following factors into consideration:
"What have I done in the past, what is my competition doing?"
"Whilst setting up Sales Target, it has to be achievable and realistic and if you're entity doesn't reach it's target it automatically adds up into the next target"
Organic : Existing Business from Existing Clients
New Business : New Business from New Client.
Sales Plan, A business plan always involves assumption, always.
Risk Factoring is part of Business Planing.
Brand Positioning
How the consumer thinks of a brand is Brand Image
"Old doesn't mean it's the best"
Brand Positioning
It is a long term ("I don't change positioning overnight")
It has to be timeless
Extendable across media (same message needs to driven across media)
It is benefit oriented (Single benefit at that, it always have to talk about just one thing)
In a product parity market, you've to create a distinct perception about/for yourself.
You have to be different
You've to create a preferential attitude towards yourself
Repeat Purchase => Thus yielding Brand Loyalty
"Values (of the Brand) are the intangibles"
Benefits are three kinds;
- Rational
- Sensory
- Emotional
Emotional Benefit is the same as what we call 'Core Value' and this is the only attribute that vary from one another in a product parity market.
Two (essential) questions that need to be answered...
Who am I? (Brand Positioning)
Why prefer me? (Advertising Positioning)
Brand and Advertising Strategy both combine to form Brand Positioning.
"Positioning must give an intangible benefit to the consumer. Position should help a brand stand out from it's pack"
"Silence is the most powerful emotion"
"On the basis of positioning, advertising will be created"
The Road Map
- Positioning Strategy
- Advertising Strategy
- Communication Strategy
- PR Strategy
- Digital Strategy
- Activation Strategy
- Direct Marketing Strategy
- Sales/Promotional Strategy
- Customer Loyalty/ Relationship Strategy
Brand Plan/Brand Strategy/Integrated Marketing Communications Strategy => Marcom Strategy
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