Skin deep loyalty

Submitted by
K.N.Jakanathan
Gopi
Vigneshwaran
Syed Mohammed faisan
Senthil Kumar
Arunagiri
Delaware India - Personal care

 Delaware has a skincare brand Taru-all purpose

cream, with Brand Equity.
 Now,Taru is losing its Brand Association in the
skincare market.
 Delaware has tied up with Progg of Germany to
launch premium Lara range products.
 Varun Krishnan – Commercial head of personal care
division.
 Joydeep Rudra – Profit centre head of Delaware’s
Skincare division.
Taru’s critical issues

 Taru fails to retain its Loyalty among consumers.

 Taru fails to offer new categories of product like
rivalry companies, to fulfill the need of wide range of
consumers.
 Taru has no clear proposition.
 Taru started to get stale, not only young consumers,
old consumers also shifting to other new brands.
 Delaware lacks in investment in marketing on behalf
of Taru.
Brand

 A Brand is a promise.
 A name, term, sign, symbol, jingle, design, or a
combination of these, intended to identify the goods
or services of one seller or group of sellers and to
differentiate them from those of competitors.
 Consumers (customers) will feel, believe, recollect
knowledge when they notice the brand name.
 It paves the way to strong relationship between
individual and the company.
Company’s belief on Brand
 Brand will create loyal beliefs about the product.
 Branding will not increase the cost of sales.
 Routine consumers will be 100% loyal to the brand.
It will make the habit of consuming their products.
 People will fall in love with brands. They will trust
them, develop strong loyalties to them, buy them,
and believe in their superiority.
 When loyalty drop off, company can reward the
customers with exciting prizes and make them loyal.
 Brand will carry on from generation to generation.
Customer’s expectation from Brand

 Customers are trying to find what they really want

and they will be satisfied, if the product is from their
favorite Brand.
 Customers will be satisfied if their Brand bring the
products with all sorts of category.
 By experience customers feel that particular Brand
can give assured quality product. For that they look
for the guarantee from the company.
 Customers expect hygienic, traditional, instant and
complacent products with aesthetic package
exclusively from their favorite brand.
Consumer Behavior
 Consumers look for variety and exclusive beneficial
products with good quality. Loyalty is possible as long as
a brand satisfies evolving needs.
 First of all, product should satisfy their needs, they seek
for good brand among deluge brands.
 Consumers look for new enriched technology and easy
handling products.
 Consumers go for comparatively low cost products with
good quality.
 Customers are hardly conscious on brand value even
though the product satisfy them for a long time.
 Consumers like to use preferably refill products.
Cont.,
 Consumers go for brand change to suit their own habits.
 Customers tend to buy the new products released by the
Brand which already satisfying their needs.
 Customers first of all fix with the category and then to the
Brand, if the brand fails to satisfy them, they move to
equivalent brands or even to the low or high level
brands to attain their need.
 People tend go for the products of particular brand if the
products are consumed by majority of the contemporary
status people.
 Consumer would not fix with a brand even though it
gives complement for buying.
Rudra’s View

 Rudra wanted taru to be replaced by lara to launch

variety of skin care products
 It takes long time for the consumer to become loyal to a
brand . Ex : Premium products coty,oriflame,revlon.
 It is necessary to focus on changing needs of the
customer .The brand loses its customers ,if it fails to
satisfy the unfulfilled need. Ex : colgate and taru.
 Colgate and taru failed to meet the new market.Its
competitors close up and coty captured the new market .
Contd..

 Rewarding customers to retain loyalty and attract new

customers to buy the brand. Ex : “collect five wrappers of
Cadbury dairy milk and get cricket cap free”.
 Reward schemes increase the consumption of a brand
and penetrates the market. Ex : “coca cola and Pepsi”
 100% loyal customers always prefers to continue their
brand. It depends whether the customer is loyal to brand
or its category. Ex : “Marlboro gold and Benson &
hedges cigarette”.
 Rudra’s view is to ensure brand loyalty to retain the
solos consumers .
Krishnan’s View
 Krishnan feels that the tie up with Lara will decrease the
brand loyalty of Tara.
 Loyalty is followed by inception and growth.
 consumers are keen to have a good incentive scheme
for the brand. ex : Pepsi and coca cola.
 Consumers are loyal to certain packaging of brand . Ex :
flora and sunflower oil.
 Krishnan's question is how to promote the brand after
losing its loyalty
Company Strategy
 Variety is good for business. Ex. Moov
 Difference in purpose of product. Ex. Johnson&Johnson
 Change to current technology and economical level. Ex.
Bajaj
 Create good promotion and showing the real intention of
the product. Ex. NDTV- 24*7
 Clear definition of the benefits. It will incorporate the
product in the customers usage pattern. Ex. Apple
Computers
 Company should attract all age group persons.
Ex. Horlicks Foodles
Cont.,
 Should be suitable for the old culture and to modern
lifestyle of the people, to whom they are selling the
products. Ex. Meera
 Winning competitors customers. Ex. Surf from Ariel
(Increased volume)
 Company should go for both POP and POD
strategies.Taru should show POP in its category level
and POD in its quality level.
POP – Points of parity.
POD – Points of difference.
Ex. Domino’s Pizza
Cont.,

 Company should retain its old customers and at

the same time they have to attract non-users.
company can change the purpose, but not its
quality.
 Company has to increase the quantum sole
users and motivate the non-users to buy their
products. Ex. Sachet shampoo
 According to consumer needs, modify the
marketing and producing volume.
sales volume = No. of brand users ×usage rate per user
Cont.,

 Company which is over coming the negatively

correlated aspects, can ever attain market
position, loyalty
Low price Vs. High quality
Advance Vs. Culture
Ubiquitous Vs. exclusive
Powerful Vs. Safe
Strong Vs. Refined
Taste Vs. Low Calorie
Varied Vs. Simple
Conclusion
 Taru has to follow all strategies mentioned.
 Introduce the Lara range of products into the market and try to
capture the market share targeting all kinds of consumers.
 Understanding consumers, requires use of sophistication
in terms of both theories applied and methods used in
the company.
 Understanding consumer behavior is a vital aspect of
marketing. Marketers need to understand the role of
involvement and habit, information processing and the
concept of life values in consumer behavior as well as
cultural determinants.
 Analyses in these areas will help to increase and retain
the brand.
“A product is something made in a
factory; a brand is something that is
bought by the customer. A product can
be copied by a competitor; a brand is
unique. A product can be quickly
outdated; a successful brand is timeless.”
–Stephen King, WPP Group, London