IMC ATL BTL Promotion et al.

Integrated Marketing Communication deals with the approach adopted by the brand to project its products such that they appeal the most to the consumers. The various modes are put together to achieve this. Hence a combination of strategies from above and below the line play an important role in this.

They are bifurcated into 2 categories viz. ATL and BTL. The following is a diagrammatic representation of the same.

P.S.: Here, it is important to note that the reach due to the two ATL and BTL types is measured by the rating points, frequencies, measurement datas of TAM, RAM, metrices etc.

ATL:

The Above The Line marketing focuses on reaching a wider audience. Especially to enhance the brand image.

This is largely carried out by the mass media.

Ambi Pur extensively used this ATL media like TVCs to penetrate into the market and make its presence felt. Even today various innovative commercials come up through the ATLs.

BTL:

Below The Line on the other hand focuses on more targeted audience. It lays a direct emphasis on making sales. This is carried out cause through specific events or even merchandising. 

BTL approach by Ambi Pur is undertaken to reach the last mile of its consumers. Thus, hosting car show events, sponsoring various promotional events are the efforts of Ambi Pur in India.

Promotional Campaigns:

This post in viewed as an extension of IMC. It is in pure relation to the ATL and BTL media types.
Promotional campaigning is today has become an utmost essential part. It is required to promote the product to a next level with all the innovative ways possible. This enables the brand to appeal more to the consumers.

Ambi Pur is know for promoting its air care products by adopting various strategies. The promotional strategies that form a part of this campaign are largely the outdoor events that form a part of the OOH types.

The images below show Ambi Pur promotions at the malls and multiplexes in Delhi, Banglore and Mumbai.

 

The interactive mascot of the Ambi Pur Car diffuser and the walk in kiosks attracted large consumers thus creating a demand.

                                       

Likewise, Ambi Pur also makes use of celebrities to endorse their products. This adds a fan following to the brand and promotes it exceptionally well.

One of the many large campaigns of Ambi Pur include the breathe "Fresh Like New" campaign covered by the Madison World's unit- Platinum Outdoor. This was headed by Sam Balsara in the beginning of 2007. This independent OOH campaign was aimed at educating the people about the diffusers that come along with the Start Kit of the car freshener. 

Also, the launch of various fragrances sees this kind of promos apart from TVCs and Print ads. Quite often it is backed up with a campaign like the "Breathe Happy" one. 

Interestingly, Ambi Pur adopts the creative and innovative approaches. For instance the distribution of free starter kits as an effort to create demand and penetrate in the market. This has been carried out at the local fuel stations and car showrooms. Realizing the fact that Ambi Pur car freshener is closely associated as the car essentials, they have been succeeded in placing their product at the Car Accessory shops. This has been working well with the brand sales as the product is placed at a place where it is aligned with the right category use.

Distribution.

The Distribution for Ambi Pur is handled by the parent company P&G. Their channels of retailers, whole sellers and such networks are strong throughout the country. However, Ambi Pur Car Freshener is a product that is mainly targeted to the urban areas for the obvious reasons of Car usage. In spite of this, the rural market is being addressed too due to the growing need for this product.

Wheresoever, the chain remains of the type: Manufacturer -> Warehouses -> 
Distributer -> Wholeseller -> Retailer -> Consumer.

In the case of the Car Freshener, the kit manufacturer can be be from abroad, as it is imported.

Also, it is interesting to note that, the channels produce 5 type of outputs: Viz.:

Lot Size: It essentially pertains to the quantity of units a consumer purchases at once. Eg: Retailer having less stock than warehouse or whole sellers justifying the demand.

Wait & Delivery time: The time a particular good takes to reach from one to the next corresponding end. Eg: The imported SF units will be received by the warehouses monthly, then the distributor gets it from warehouses fortnightly, and the whole sellers/ retailers from the distributor on a fort nightly basis.

Spatial Convenience: It is the convenience level offered to a customer by the element. Typically the consumer end side has high level of spatial convenience than the one on the manufacturers side.

Product Variety: Assortment offered which being low at the warehouse level if they are exclusive. But, being high at the retailer level since the consumer needs to be provided with a wide range of available variety.

Service Backup: It is in relation to the add on services that are highly offered at the manufacturer-warehouse level and low at the retailer, consumer end level.

The following shows a Distribution (Starter Kit: SF & Refill: RF)Depot sites of a few cities. 

Product Mix Pricing.

Jessie J brilliantly quotes 'Price' in one of her latest hits- 'Price Tag.'

"It seems like everybody's got a price

I wonder how they sleep at night

When the sale comes first and the truth comes

second

Just stop for a minute and smile"

It simply justifies that nothing in life is for free. Every thing has a cost associated with it, and so does our Product Mix!

Pricing is an extremely important factor in the Product Mix. Revenues are brought about because of appropriate pricing. It is a vital criterion in the consumer's decision process. It gets the consumer to demand for lower prices to the retailers which in turn does the same to the manufacturers. Anyhow, it does exist predominantly and therefore forms as one of the pillar of the 4 Ps constituting to value to the customer.

Well, the following are 6 kinds of pricing. The marketer makes use of this in order to decide and set prices of the product mix.

Product Line Pricing:
It is the variable price associated with every product in the variants of a Product Line. The Depth of product sees different item marked with different prices. It is to suit the customer requirements and value. It is determined according to the product's demand, SKUs etc. Eg: FMCG products.

Optional Feature Pricing:
Every time an additional feature is offered, it comes with a price. It is like the add ons you go on adding to your new car purchase in order to customize it. Eventually, only to realize the total price amount has increased. Eg: The Tour Packages.

Captive-product Pricing:
This is of a pair or combination that goes hand in hand. The purchase of one requires the purchase of the other too. Without which the functionality cannot be put to use. For instance- the razor stick and the blade.

Two Product Pricing:
This includes the example of the SIM card price and the usage price (voice, data charges etc.)

Thus the former bares the latter which is very much usage dependent. The service industry boasts of this pricing. Eg: Restaurants/Clubs.

By-Product Pricing:
As the word suggest it is the price associated with the by-products. These are resulted out during the making of one Product. For instance, the Petroleum products, Meat etc.

Product Bundling Pricing:
This ensures the product is made available in an assortment. Thus, the benefits of other products in a bundle can be obtained at a competitive price than that of the individual price of those items.
This is generally used as promotion. Offers seek Bundling Price as customers prefer to buy products in groups. Eg. Price for a bundle of Oral health care items.

From all the above 6, Ambi Pur has Product Line Price (different price for a 8 ml refill bottle, different price for a starter kit and that for an aerosol bottle.), Captive-Product pricing (The vent diffuser is useless without a refill bottle. Purchase and assembly of both are essentail for the proper functionality.). Also, the Bundling Price is offered on Ambi Pur. It is clubbed with other Air care products and the entire assortment/package is sold at a Bundling Price during promotion, introduction or opportunity seasons.


The following gives the current price rate at which the diffuser system of Ambi Pur Car Freshener:

Product Brand Relationship!

The Product Hierarchy:

The following 6 levels are observed considering the Ambi Pur as an example.

1) Need Family:
The essential requirement that is behind the existence of Ambi Pur. i.e. Pleasant smell.

2) Product Family:
All those product classes that satisfy a core requirement with fair effectiveness. It deals with the categories. E.g.: Air Care, Odour repellents, Air Hygiene etc.

3) Product Class: 
Group of products with a certain recognizable functions forms a Product Class. It is viewed as a sub-category. E.g.: Car fresheners, Home Fresheners, Washroom fresheners, etc.

4) Product Line:
It consists of Brands associated with the products. All similar function performing products under a typical class makes a Product Line. They are usually sold through the same chain, retailer, channel and to the same consumer. E.g.: Ambi Pur, Godrej Aer, Odonil and so on.

5) Product Type:
One or several possible forms of the products under a product Line are termed as Product Type. It is basically the variety offered by that particular brand. E.g.: Vent Diffusers, Electronic Diffusers, Aerosols, Hangers, Gels etc.

6) Item:
It is the Stock Keeping Unit distinguished by size, price, appearance or other characteristics. E.g.: In case of Ambi Pur Car freshener, the 8 ml liquid bottle to be fixed in a diffuser and the different shape and colour of the vent diffuser.

Product Mix:

It is inferred from the 6 levels of hierarchy mentioned above. Let us see how does this apply to Ambi Pur.
Thus have a look at the figure Product Length and Width figure given below:

The Product Width consists of the horizontal expansion of the Product Family and Class associated with a brand. And the vertical reference gives the Product Line & Type. The Width is an expansion in a new Category or a sub-category. Whereas, the Length gives us new Variants under the same vertical of the category. Product Depth is concerned with the 'number of variants in the items of brands.' Market leaders are usually distinguished by high Depth and large Market Share.

Thus we see that the Product levels and Mixes helps in nothing but the customer in deriving a good value for the purchase made against the core benefit resulting out of a basic requirement.

Product levels-3 Cs relation.

The product characteristics are decided in the 5 product level classifications. Linking the same with Ambi Pur shall give an insight about the levels that constitute the customer- value hierarchy.

Core Benefit:
The Core benefit that Ambi Pur users look forward to is in buying a pleasant smell in their cars. That is infact what they contribute to in terms of their money while making a purchase. Hence, this forms an integral part of the 5 levels.

Basic product:
P&G today converts this requirement of the consumers into a basic product. Thus, a starter kit of Ambi Pur consisting a diffuser top and a perfume bottle constitutes to the same.

Expected product:
It is this feature that meets the expectation of the consumers.
Ambi Pur strives in delivering the fragrance, in superimposing on the odour thus by eliminating it, in providing working diffusers and in vouching freshness.

Augmented product:
It is aimed at going beyond the competition that generally thrives at the expected product level. Ambi Pur does this by introducing the new fragrances, new smart devices and building a constant innovative approach in the aesthetics of the product. This helps tackle the competition. Thus, provides for what exceeds the customer expectations.

Potential product:
It is a summation of all the possible transformations and the augmentations. Also, it encompasses the offerings the product might undergo in the future. So it is  important in the decline stage when the product can be re-introduced and brought back in the competition. Ambi Pur to be seen as a potential product needs to find new ways to satisfy the customers and to distinguish their offerings.

The 5 Product level - 3 Cs Relation figure:

If we happen to place the above 5 product levels in the 3 Cs model, then we shall obtain the customer-value hierarchy. Let us understand what falls where.

The Core benefit finds itself under the Customer. It replicates the Customer benefit cost which builds the Customer value. Further the core benefit comes from the quintessential customer-centric approach that adds Value, mentioned by the latest AMA marketing definition as quoted below:

''Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.''

Also the Expected product lies in the same space since it is the expectations of the consumers which are converted into products. It not just satisfies their requirements but also fulfills their expectations.

The Company comprises of Basic and Potential products. It is the company that prototypes and develops a basic product from the core benefit. It then updates or upgrades the original product in order to remain in competition.

Further, the Competitor umbrella covers the Basic, Augmented and the Potential products for clear reasons of providing a cut throat competition.

4 Ps- The Marketing Mix!

Given that Product, Price, Promotion and Place forms the marketing mix, realizing the existence of the modern marketing management 4 Ps is also important, viz. People, Process, Programs, and Performance, as mentioned by Kotler. However, many such timely updates gives rise to the alternatives of our conventional 
4 Ps. For an instance, consider the following in the B2B reality mentioned in the Jan-Feb '13 issue of HBR magazine.

This paradigm shift self explains and justifies today's world of marketing concepts.

But, does the original 4 Ps validate out PLC? Does it encompass all the factors discussed and left out in the previous post? Do they relate to our product in various stages?

Well for this, let us have a look at the 4Ps vs the PLC stages shown below:

Product:  
Considering a nascent category of 'Diffuser system Car fresheners', Ambi Pur had an early mover advantage. It was one of its own kind without any variants in the Introduction period. New fragrance versions were launched in Growth stage. The Maturity stage saw the product mix out of which the best seller retains in the Decline stage.

Price:
Ambi Pur dealt with huge promotions in the Introduction stage. Hence, initially the products had heavy prices to recover the promotional expenses. The then brand was bullish about Ambi Pur and hence could afford the high prices. As any product enters the Growth stage, prices either fall or remain the same. It is since the sales and profits have begun to take off. Also, the increasing competitors is a factor. Thus, increasing the market share is the aim here whereas defending the market share is an objective in the Maturity stage. Decline stage deals with the pricing that leads to profit. After all its a matter of the existence of the product now, and not just the survival.

Promotion:
Introduction stage of Ambi Pur recalls adopting promotional strategies like vending their starter kits at gas stations, car showrooms, accessory outlets and so on. Thus educating and informing the public created a general awareness about the product. The competitive Growth stage sees promotion focusing on distinctive features, technological advancements and on modern innovative design launches. It becomes necessary in order to do away with the competitors. This takes a gradual backseat as advertising is restricted only for reminder purposes in the Maturity stage, as people are already aware of the product, it has reached the maximum sales, profits and customers and it's time that buyers start looking for alternatives provided by competitors. Lastly, the Decline stage sees absolute no or low promotions- just in case of a particular product that is hopeful of fetching profits. At such times, it is typical for the finance consultants to demand a cut down on the Ad expense in order to compensate for the decreasing or stagnant Top line.

Place: 
The accessibility is discussed in the context of Distribution under Place. Introduction phase shows us a limited distributors. Initially, the product is perhaps launched in certain Tier I or II cities only. Hence, the distribution network is amature and not dense. Growth stage needs stronger distribution channels that provides for higher sales as the product penetrates the market further. Likewise, this channel becomes dense in the Maturity stage where the market share needs to be defended from falling apart; unlike in the decline stage where majority of the weaker non-revenue generating products and their channels are withdrawn, retaining only a fewer outlets in number.

The Product Life Cycle

The life cycle process starts right from the launch, reaching all the way up to the waning stage. In this, the product grows, matures, survives and declines eventually. However, at every stage it gives the marketer new challenges, threats and opportunities to cash on. These stages put together in a chronology gives us a Product Life Cycle-PLC, as shown below:

Introduction stage: 
Ever since the launch of Ambi Pur car freshener in India, this nascent category product had an untrespassed market. In such a case, informing the consumers becomes crucial. Thus, the introduction of the product in the market lays the foundation of the further PLC stages.
Ambi Pur's primary essential: Generating Awareness. Followed attracting the category buyers. Therefore, huge promotions were undertaken. Although, this being a category product, the promotions remained high incurring huge expenses- justifiable in this stage. Thus, the challenge was in introducing, promoting and persuading with the diffuser car freshener. It inculcated a high risk of dealing with high prices, low sales and negative to low profits until the next stage.

Growth stage:
This is where the product climbs the ladder of 'growth'. Acceptance of the product, increasing sales by the early buyers and rising profits mark the growth stage. The introduction stage with its critical promotion provides for this. Thus the costs averages as the profits starts to show in. Noteworthy feature of this stage is that as it rises upwards, the Competitors starts to surface.
Ambi Pur introduces the new fragrances and diffuser systems. Technological advancements and innovative designs helps in the product longevity in the next stage. It adds on value and a feature to their tag. Thus in such a scenario, Ambi Pur competes with its early growing competitors by rendering various quality products, building consumers' trust and thus maintaining their loyalty.

Maturity stage:
A product is fully matured when it shows the signs of optimum sales, profits and maximum customers irrespective of the competitors. This stage sees the maximum competition which further declines. Ambi Pur, despite many potential competitors and substitutes like Godrej Aer and several car fresheners, it retains the audiences. Thus, we see that defending the market share in terms of  profits and people is of utmost importance in this stage. Cost here is again low due to the competitive environment. Stabilized sales and profits brings about a plateauing in this stage. However, its contour and period remains unpredictable and depends on various marketing strategies and their outcomes.

Decline stage:
This is an inevitable stage however can be tactfully avoided or delayed. The sales see a downfall. profits follow suit. The product is pushed on the verge of loosing the race. Either the competitor takes over or the product which was once a market leader turns into a market follower. Clearly, the customers taste for the product has changed. Yet, for sustainability issues, we see the cost remaining low. The products and channels which do not perform well are cut off. Expenses are efficient and minimal- only on the products assuring a return. One way to get out of this phase is by revamping the product. Bringing in innovation and re-introducing it with a positive change.

Conclusion: 
It can be inferred that the PLC stages are interdependent. Their period is undefined. It largely depends on the different marketing strategies, pricing being one of them. These strategies need to be updated or changed from time to time, stage to stage. It is interesting to note that there exists different patterns of PLC for different category of products. Eg: Growth-slumpy-maturity patter for Kitchenware. Cycle-recycle for pharma drugs and Scalloped pattern for Nylon/plastic.

And here it comes...Competition!

In order to achieve increase in market share, growth volume and profits, sellers compete among themselves. It is done by varying parameters like the product price, product innovation, it's channeling and distribution and several other factors. This rivalry among the sellers is called as the competition. To understand it, we must take into consideration the direct & indirect competitors of the product. Also is essential the realisation of the substitutes available to our product, in the market.

The air care market in India is of about ` 300 crore, compared to the $ 7.5 million market in the U.S. Ambi Pur was launched here in 2002. Back then, in 2006 the air care market was perceived to be of ` 50 crore and growing at an average annual rate of 6.2%. Later that year Ambi Pur's market share rose to 11.7%. Under the JV between Godrej & Sara Lee, Ambi Pur continued to see a rise in it's market share. In 2009 it was 14.1%. Thus emerging in a dominant position with a premium brand in the car freshener category.

The Competitor analysis gives us the distinctive features of the following two competitors viz. 

The Direct Competitors: The products that impose an immediate threat because of its more or less similar functionality, packaging and innovation, competitive pricing, and gaining popularity.

The products that lie in this range are usually the market leaders or challengers. For instance: international brand like- US-based home care player and SC Johnson’s 'Glade'. 'Premium'- the domestic brand owned by Helene Curtis India Pvt. Ltd., 'Aer'- belonging to Godrej and 'Air Wick'- owned by the Reckitt Benckiser. The last two having a market share of roughly 6% and 8% respectively as of 2012 in their launch years. Out of the above, Godrej Aer is the most relevant direct competitor to Ambi Pur as far as the car freshener product category is concerned. It is the one after Ambi Pur to have started the business of car diffuser perfume system in India, apart from their other household room freshener range of products.

The Indirect Competitors: These are the ones that serve the same purpose but may not have the same functionality of the original car freshener product. Odonil from Dabur, hanging perfume sachets by Miracle, other gel based car air fresheners, sprays/ aerosols, perfume dashboard bottles, or even the primitively used car fresheners- incense sticks. They can be from the market followers group that remotely affect the share of the leaders in all aspects.

Max-to-max they reach to be the very next challengers but only if they shape their product in the same way as of the ace one.

Porter's 5 force model can be referred for the competitor analysis. The attractiveness of a market or an industry can be studied through it. The 5 forces shown below are explained in detail in context to Ambi Pur's market.

Rivalry among Industry Competitors: The product pricing clearly discerns the rivalry in the direct competitors in the air care-car freshener industry. Ambi Pur is not only supposed to tackle the competitive prices offered by Aer but also the innovation and designing of the latter.

Potential Entrants: The New entrants in this category are the ones which are adept with the technological improvements that lack in the original product. Their launch as a potential challenger is a result of intense study and observation of the market leader. This car freshener category is always under a threat of new entrants because of the increasing- purchasing power, awareness & standard of living, and due to the car freshener being a quintessential component of the car. One strong barrier against all these new arrivals would be P&G brand name and the customer loyalty towards it's product.

Suppliers: In this growing market, there exits several suppliers. From the supplier's point-of-view, car freshener industry is very active, full of potential and attractive. The suppliers are therefore left with not much of a strong bargaining power.

Buyers: It includes the price sensitive target customers. Having a set of option to choose from gives the buyers a power to bargain. Due to a presence of a growing number of buyers, the industry seems to be promising. In order to cater to the price-sensitive customers, Ambi Pur is made available with price promotions and discount schemes on the starter kit and the refill packs.

Substitutes: There is a huge threat of substitutes because of reasons like- the changing buying patterns, aggressive pricing and monotony of the ace product. Also a greater reason for a consumer to buy a substitute is impulsive purchase in an emergency. Time, cost and the availability factor adds on to it. This leads a buyer to depend on the substitute as an 'alternative'. A consumer might substitute Ambi Pur for a simple Car perfume bottle, Aerosol or even for a Freshener Sachet. For instance, the low cost substitute can have an imitated diffuser system design and functionality. The similar or new fragrances, packaging & promotions. However, the cheap substitute would usually lack in quality, standard and longevity.

Industry Insight:

"In a rapidly growing and a new product category, while there is sufficient room for each new player to grow, product differentiation and innovations go a long way in helping a brand score above the rest and establishing a brand recall."