pond's old marketing campaign

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Pond’s cold cream new advertising campaign in India About Pond’s India Limited: Pond’s India Limited a manufacturing and marketing company of toiletries and cosmetics Turnover of Rs.160 million in year July 1978- June 1979 A well known brand with products like Dreamflower Talc, Angel Face, Vaseline and Cutex A market leader with a share of 20-25% with a strong consumer franchise of 25 million urban women aged between 15-45 Manufacturing of 2.5 million products every year with 430 direct employees Extensive sales and distribution system with 20 warehouses, 90 sales forces and 640 stockists who together directly covered 35000 retail and wholesale outlets Cold cream market in India:

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Page 1: Pond's old marketing campaign

Pond’s cold cream new advertising campaign in

India

About Pond’s India Limited: Pond’s India Limited a manufacturing and marketing company of toiletries

and cosmetics Turnover of Rs.160 million in year July 1978- June 1979 A well known brand with products like Dreamflower Talc, Angel Face,

Vaseline and Cutex A market leader with a share of 20-25% with a strong consumer franchise of

25 million urban women aged between 15-45 Manufacturing of 2.5 million products every year with 430 direct employees Extensive sales and distribution system with 20 warehouses, 90 sales forces

and 640 stockists who together directly covered 35000 retail and wholesale outlets

Cold cream market in India: Cold cream market in India was of Rs.60 million in 1978 with the growth rate

of 6% per annum in terms of volume and 10% per annum in terms of value Northern region of accounted for almost half of the market share and eastern

region accounted for slightly more than the quarter of the market share Western and southern region accounted for 15% and 10% respectively The cold cream market was highly urbanized with four fifth of the sales

happening in metropolis cities 70% sales were happening during the period from October to March

Pond’s cold cream promotion and competition analysis:

Page 2: Pond's old marketing campaign

Pond’s was a market leader in terms of cost per gram

Table 1: Pond’s cold cream prices Size Quantity Cold cream Rs.P Lemon cold

cream Rs.PSmall 14g 4.35 4.60

Medium 30g 6.55 6.80Large 60g 9.60 9.85Family 100g 14.85 NA

Economic 140g 18.55 NA Note: The prices refer to April 1979 and exclude taxes and the Lemon cold cream was marginal extension of Pond’s cold cream range and accounted for very small portion of their cold cream turnover

Table 2: Market prices for major competing brandsPack size Nivea Rs P Charmis Rs P Lakme Rs P

25g 6.50 - 4.9030g (Tube) 7.00 - -

40g - 7.62 7.3050g 10.75 - -80g - 10.80 11.80

125g 19.50 - -160g - 18.00 -

The development of the new campaign: New campaign was developed from the research data gathered through the

Advertising and Marketing Planning Index of the India Market Research Bureau

The data brought forth the varying characteristics of the skin with regard to the need of cold cream as given below in their rank order

1. Overcoming dryness of the 2. Need for softness and smoothness3. Protection against the weather

Page 3: Pond's old marketing campaign

The earlier campaign was as below:

To emphasize the extra-rich natural oil content of the Pond’s cold cream which would help to provide the required moisture for curbing dryness of the skin they came up with the new advertisement

Page 4: Pond's old marketing campaign

The marketing promotion was done in order to capture market leadership I the growing market

Take away and Learning: This case teaches that even if you are market leader in terms of volume, we

have to consider demographics and change in the environment to sustain that leadership

Pond’s Advertising campaigns teach that the product and its attributes are the most important things to be considered for the promotion

Reference:

The Book Advertising Management: Concepts and Cases by Manendra Mohan.http://books.google.co.in/books?id=eLgobuBJQXYC&printsec=frontcover#v=onepage&q&f=false