Project on Marketing Management
Table of Contents:
2.Market Strategy and 2 Segmentation
3.Branding Strategy 8
1. Customer segmentation – decide the product lines and variants to target the various segments
A unique organization of the women, by the women, for the women
Shri Mahila Griha Udyog Lijjat Papad is a Women’s organization manufacturing various products from Papad, Appalam, Masala, Gehu Atta, Chapati, Detergent Powder, Detergent Cake (Tikia), Liquid Detergent.
The organization is wide-spread, with it’s Central Office at Mumbai and it’s 77 Branches and 27 Divisions in different states all over India.
Membership has also grown from an initial number of 7 sisters from one building to over 43,000 sisters throughout India.
The success of the organization stems from the efforts of it’s member sisters who have withstood several hardships with unshakable belief in ‘the strength of a woman’.
While other environmental factors may be favorable for Lijjat’s business in it must considered along with result of analysis like SWOT. Keeping in view the current economic scenario, especially FDI the relevancy of SWOT is very much apt and required. However, the relative importance of economic factors compared to other factors will depend on the particular position of a business.
SWOT Analysis of Lijjit
1. Womens’ empowerment.
2. Hard work.
3.Largest papad making Firm
4. Having distinct identity among competitors. Opportunity:
1. Capturing unidentified market. Bind spots. i.e Proposing it as a substitute for chips and other ready to eat snacks.
2. Increasing Export. Weakness:
1. No credit.
2. Use of modern machinery in manufacturing.
1.Business in the present scenario of FDI
2.New entrants in the segment
3.Other products competing with Lijjat and similar products.
Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs or common desires .Depending on the specific characteristics of the Lijjat Papad , these subsets may be divided by criteria such as age and gender, or other distinctions, such as location or income. Marketing campaigns can then be designed and implemented to target these specific customer segments, addressing needs or desires that are believed to be common in this segment.
Potential area: At present there is an existing market of chips and other ready made snacks which is flourishing at a higher speed and is bigger than that of papad. It is proposed to target the young group which is the main consumer of chips. The USP for the papad can be, it is a Desi Product which can be made available even at small village shops as a ready made snacks.
What is Market Segmentation?
While there may be theoretically ‘ideal’ market segments, in reality there are different ways of imagining market segments, and create product differentiation strategies to exploit these segments.
We intent to expect the below mentioned criteria’s from market segmentation:
* It should be measurable and profitable.
* It should be stable and should be able to tell product mix.
* It should be efficient enough to tell the market competition.
* It should be able to direct to a potential new customers.
* It responds consistently to a given market stimulus.
In the case of Lijjat we can have the segmentation as given below.
The market is segmented according to geographic criteria-nations, states, regions, countries, cities, neighborhoods, or zip codes. To meet our vision of reaching to small villages can be achieved by targeting small shops in rural areas(Local Marketing) There the product can be made available in ready to eat, targeting small age group customers.
Segmentation according to occasions is based on the arising of special need and desires in consumers at various occasions. For example, papads are liked much During Diwali and Holi. Another type of occasional market segments are people preparing for their wedding or a funeral, occasions that only occurs a few times in a person’s lifetime but happens so often in a large population that it can be considered a market segment.
Demographic segmentation consists of dividing the market into groups based on variables such as age, gender, family size, income, occupation, education, religion, race and nationality. E.g The type of papad used by a different income group will vary. A man in low income group would like to have papad in price range from Rs 5 to 10. Which may not be the case with a high income group, where the customer will go for a little large pack with ingredients of his choice.
Psychographics is the science of using psychology and demographics to better understand consumers. Psychographic segmentation: consumers are divided according to their lifestyle, personality, values and social class. Consumers within the same demographic group can exhibit very different psychographic profiles. The below mentioned picture depicts how the psychographic segmentation helps understanding customer.
Positive market segmentation
Market segmenting is dividing the market into groups of individual markets with similar wants or needs that a company divides into distinct groups which have distinct needs, wants, behavior or which might want different products and services. Broadly, markets can be divided according to a number of general criteria, such as by industry or public versus private. The requirement of a papad by a old age home will be different than that of a boys hostel.
In behavioral segmentation, consumers are divided into groups according to their knowledge of, attitude towards, use of or response to a product. It is actually based on the behavior of the consumer.
Using segmentation in customer retention
The basic approach to retention-based segmentation is that a company tags each of its active customers with three values:
Is this customer at high risk of canceling the company’s service?
One of the most common indicators of high-risk customers is a drop off in usage of the company’s service. For example, in the credit card industry this could be signaled through a customer’s decline in spending on his or her card.
Is this customer worth retaining?
This determination boils down to whether the post-retention profit generated from the customer is predicted to be greater than the cost incurred to retain the customer
What retention tactics should be used to retain this customer?
For customers who are deemed worthy of saving, it is essential for the company to know which save tactics are most likely to be successful. Tactics commonly used range from providing special customer discounts to sending customers communications that reinforce the value proposition of the given service.
2. Branding strategy – decide and justify the value proposition and brand extensions based on the product lines
Definitions of Brand Strategy :
It can be defined as a plan for the systematic development of a brand which will enable it to meet its agreed objectives. The strategy should be rooted in the brand’s vision and driven by the principles of differentiation and sustained consumer appeal. The true brand is the sum total of the perceptions of all the ingredients which contribute to revenues and profits.
Core Values building Lijjat Brand:
The brand is having the strength of “Consistently Good Quality” as its USP .The Lijjat brand is built on certain core values that have been ingrained into the entire system. The values are
a. Make sure that the process runs smoothly
b. Ensure the highest quality standards
c. give the product at a good price
d. Good corporate governance and profit sharing.
The company believes that the best promotion it receives is by the word of mouth. Therefore it focuses more on quality and cost effectiveness rather than expensive methods of advertising. The total expenditure on advertising is approximately only0.2 percent of the turnover.
Proposed Branding Strategy:
The brand communicated its Crispness and quality through its ads. The ads feature a Bunny (mascot) and a very popular jingle ‘Khurram Kharram”. To meet the vision of increasing the market share in villages the product can be highlighted with a punch name of India ka Papad. This Punch line will help to extend the brand value. All the good indigenous things used to make can be compare to the side effects of the chips which a dominant product in the market. Lijjat papad is a brand with a difference .This brand is a special one because it makes a difference in the livelihood of thousands of poor women in India. This is the uniqueness which the product has as an edge from others.
From a study it is evident that the use of papad as snacks is low as compared to its use as other segmentation in same group.
The promotional strategy can be proposed with tie ups with Leading Restaurants where it can be served as an snacks or appetizer.
Promoting as an best Indian snacks with the help of using the existing brand images of the prominent food corners and snacks corner.
The Lijjat Papad will have the Branding strategy to compete with other products in the same segments rather to any other papd product. It will pave a new path which no any other company has tried yet. It is based on the philosophy of always lead and never follow.
Beyond the rural sector, for urban and export segments the Papad can be projected as a form of Indian crispy bread. It is taken as snacks and also as a dish with lunch and dinner. Lijjat has become an integral part of the Indian palette through sheer determination and hard work.
When a firm marketing a product with a well developed image uses the same brand name in a different product category it is called Brand extension or brand stretching. It can be termed as, sustainability just from the renowned name.
It is said that brand’s “extendibility” depends on how strong consumer’s associations are to the brand’s values and goals. It is clearly visible in case of Lijjat Papad.
The primary and the most admired product of the company is papad that are available in various sizes and types. The company also produces Jeera Papad that is also a well known product of the brand. They even manufacture the traditional Appalam papad that is a famous addition to the South Indian savories. It is also used for the preparation of Papad Ki Sabzi that is a well known Indian delicacy. Lijjat Papad is also a leading manufacturer of traditional papad that are available in various sizes and flavors and add spice to your food. They also have the ready to mix masala products that are available in boxes and are made for different taste needs.
Other Products where Brand Extension Required:
Although all products from Shree Mahila Gram Udyog have different value proposition, the brand name of the Lijjat can be extended along with maintaining the value proposition which the products have from beginning.
Shree Mahila Gram udyog also provide Gehu Atta or the wheat flour that are used for preparing various household dishes. The packages are available in various sizes as per the suitability of the consumers. They even sell readymade Chapatis at nominal prices that are ready to eat products at any time of the day. Apart from the food products the company also manufactures detergent products that are used for washing clothes. These detergents are available in various sizes and types as per the cleanliness requirements of the consumers. With all such products the name form the manufacturer of Lijjat Papad can be used.
To fulfill the vision new packing in the form of ready to eat with same brand can be used.