11. Introduction of the company and
workforce
CHATEAU DE VALLOIS
is a wine producing
company in Bordeaux region
of France. Its wine are
classified as “first growth”
and commands top prices
and was considered a
luxurious wine estate
12. • Family led business
• Produced finest class of Grand Cru Classe.
• Sold about 1,50,000 bottles of Grand Vin du Chateau de Vallois
and around 2,00,000 Puine wine.
• It did not sell directly to consumer market.
• Had a network of negociants .
13. Brand extension was the topic of
debate
New idea proposed
• Younger wine enthusiasts were priced out of high end
French wines .
• Non traditional wine makers with low quality and low
price will capture the young consumer market
• De Vallois should become affordable luxury .
• Vallois to sell directly to consumers .
14. Counter points for the new idea
• Not enough grapes for a new De Vallois brand wine.
• Would have to buy vineyards to produce more
• It may damage the image and exclusivity of the whole brand
• Negociants will be angry .
• No experience of distribution channel.
• Heavy investment .
• Marketing insurance and transport will be new problems to
address .
15. BRAND EQUITY
BRAND EROSION
NICHE
MARKETING
MARKETING
RESEARCH AND
DISTRIBUTION
CHANNEL
BRAND EXTENSION
VS PRODUCT LINE
EXTENSION
MARKETING
RESEARCH AND
DISTRIBUTION
CHANNELS
INTERNAL
MARKETING
CUSTOMER
LOYALTY
BRAND EQUITY
BRAND EROSION
MARKETING
RESEARCH AND
DISTRIBUTION
CHANNELS
INTERNAL
MARKETING
CUSTOMER
LOYALTY
17. It is the commercial value that derives from
consumer perception of brand name of a
particular product or services .
It retain current customers and attract new ones .
More brand equity ensures growth versus
competition
High brand equity sustains tough
competition
18. BMW and MacDonald are among the top most
high brand equity companies
19. BRAND EROSION
Branderosionoccurs whencompany loses its unique
identitythat sets it apart fromother companies in the
market place
Sometimes wrong decisions , unplannedextensions lead to
brand erosion
20. IN THE CASE OF CHATEAU DE
VALLOIS WINE BRAND IN THE
ARTICLE
There are two cases possible :-
The company can leverage its high
brand equity and authentic image to
successfully launch the new product line
or brand for young customers
If the new product fails to establish
authenticity among consumers then the
parent brand erosion and
cannibalization is likely to occur
22. LINE EXTENSION
When a brand is used to brand a new
product that targets a new market
segment within a product category
currently served as the parent brand .
Line extension can be on the basis of
size , colour , flavour , shape
Colgate is perfect examples with its product line of colgate whitening , colgate
herbal , colgate cavity protection
23. BRAND EXTENSION
Procter and Gamble brands . An outstanding
example of brand extension
Brand extension uses an existing brand name to promote a
product in a different category . Here the product category is
changed
24. IN CONTEXT OF THE ARTICLE
CHATEAU DE VALLOIS WINE BRAND
HAD TWO OPTIONS IF THEY AGREE
TO LAUNCH A NEW WINE VARIETY
They can go for either brand
extension or line extension to launch
a new wine for young consumers at
low prices
Both have different implications and
thus proper marketing research to be
conduct to explore which one is the
suitable option
25. A niche is a focused, targetable part of the
market, a specialist providing a product
or service that focuses on specific client
group’s needs, which cannot or are not
addressed in such detail by mainstream
providers.
NICHE MARKETIG
Series of TAJ Hotels and resorts targets on niche market of
high profile people providing exclusivity
26. CHATEAU DE VALLOIS
WINE BRAND IN THE
ARTICLE IS ALSO A
NICHE MARKETING
COMPANY
SHOULD IT INCREASE AND
ENHANCE ITS EXCLUSIVITY
OR ENTER IN OTHER
MARKET SEGMENTS TOO?
27. INTERNAL MARETING
Internal marketing is a means
of involving staff at all levels in
effective marketing programs
by enabling them to
understand their role within
the marketing process
28. The company in the article –
CHATEAU DE VALLOIS also
exhibits the lack of internal marketing
. It possess old family business ways
and norms and working environment .
There were was no proper board of
directors , no separate department
and enough staff and manager.
Internal marketing would have helped
a lot the company in taking decisions
and making investments
29. Two options withthe wine brand
CHATEAU DE VALLOIS
VERTICAL BRAND
EXTENSION
Here the brand extends the
same product with different
prices and quality generally
seen in automobile
Though it is the quickest way
to leverage brand equity it
involves risk of cannibalization
INCREASING THE
EXCLUSIVITY
If the company extends its
brand in more exclusive
wines for more niche
market it will associate the
brand with desirable luxury
And become the pioneer
30. Module 3
Looking at cases and
examples
A BRAND WHICH PRESERVED
LUXURY AND EXTENDED THE
BRAND
31. GIORGIO ARMANI is a Italian fashion house launched as a
company in 1975 . It designs , manufactures and distributes
HAUTE COUTURE, ready to wear leather goods , shoes , watches
,jewellery ,accessories ,cosmetics and hotels
32. Giorgio Armani Prive was a luxurious brand and was red
carpet or black label market . It gained its image as finest
class clothes designed by GIORGIO ARMANI
ARMANI HAD A BIG IDEA toextend the brand and
cover all potential customers not by a single product but
different lines targeting the highly segmented customers
33. ARMANI divides the market
basedon demographic factors
(age, style, budget, etc.)and targets
each of its lines to a specific
demographic
IT IS ABOUT MAKING YOUA CUSTOMER FOR LIFE
34. ARMANI XCHANGE is a mass-market line
aimed at younger consumers who may be
familiar with the Armani brand but unable to
pay thousands for a single garment;
GIORGIO ARMANI is targeted toward
an older, more affluent client base that is
interested in more classic European tailoring;
Armani Prive is aimed at the small
subset of very wealthy clients who prefer
couture to RTW
Market segmentation
, extensive marketing
research , appropriate
targeting , brand
equity and finest
quality were the key
concept in successful
brand extension from
luxury to affordable
luxury
35. Case
study
MARICO LIMITED
I have presentedthis case to outline most
important points I learnt in this internship
with practical application
36. INDUSTRY CONSUMER GOODS
FOUNDED 1987
HEADQUARTER MUMBAI
PRODUCTS EDIBLE OIL , SALT , HAIR CARE PRODUCTS , SKIN
CARE PRODUCTS , FOOD
REVENUE $ 173 MILLION (2014)
CEO SAUGATA GUPTA
FOUNDER HARISH MARIAWALA
37. MARICO’S
JOURNEY1971
Harish Mariawala joins family business BOMBAY
OIL INDUSTRIES
1971
Harish envisions a branded FMCG market for
coconut and refined edible oil in small consumers
packs and distribution channel for Parachute
1980
Traditional Parachute pack replaced by plastic
packs
38. 1990
Marico limited is
born
MARICO’S
JOURNEY
1991
3 Ps product , priority and
people were born
1991
Launch of HAIR CARE
1992-1994
Set up of its first office in DUBAI
1990
Marico limited is
born
1990
Marico limited is
born
39. 1994
REVIVE cold water starch
MARICO’S
JOURNEY
1996
Marico lists on Indian stock
exchange
1999
Marico aquire MEDIKER
first overseas manufacturing facility in Bangladesh
2002
Kaya skin clinic – INDIA’s first unisex top of
line dermatology led clinic
40. 2003
MAKING A DIFFERENCE– sets up Copra collection
centres to procure directly from farmers increasing their margin
and improving their lives
MARICO’S
JOURNEY
41. 2006-2007
Enters AFRICA and aquire
BLACK CHIC AND HERCULES
2010
CODE 10 male grooming in
Malaysia , Saffola
2011 & 2012
PARACHUTE ADVANCE ,
SETWET , LIVON
MARICO’S
JOURNEY
2006
NIHAR enters MARICO’S fold
2006
NIHAR enters MARICO’S fold
42. What are the factors that
sustains MARICO in tough
competitions
MARICO’S
JOURNEY
43. RESEARCH AND DEVELOPMENT
• Evaluation of natural herbs for proprietary
,patentable hair and skin products with sponsorship
from department of science and technology
• Working with premier institutes for better evaluation
of products FMGC andCSIR
• Numerous innovation in packaging options
• LOSORB TECHIN EDIBLEOIL ANDFREEOF
TRANSFAT, USE OF RICEBRANOIL
• Parachute therapie hairfall solution and Parashute
advance after shower cream are some innovation
example
MARICO’S
JOURNEY
44. MARKET SEGMENTATION AND TARGETING
GEOGRAPHICSEGMENTATION INDIA- urban population and townships
, rural India in some products
DEMOGRAPHICS– educated women , men over age 45, girls and boys in
20s , health conscious people , western culture effected lifestyle, middle and
lower income specially
BEHAVORIAL SEGMENTATION– based on competition each product is
available in two or varieties , size and shape with distinctive features to
retain users and attract non users
MARICO’S
JOURNEY
45. Extensive market research MARICO’S
JOURNEY
Marico is a pioneering in market research and identifies each
and every need and want of consumers in ceratin product line
range .
Example- saffolagold , saffola tasty, new saffola
, suffola active are different varieties of saffola edible oil
launched after extensive research of consumer market
47. MARICO’S
JOURNEY
Advertising campaigns and building credibility
It exercises excellent advertising
campaigns so that people can
associate themselves with the
product
Heart day celebrated by SAFFOLA
this way linked consumers to a
delicate feeling of protecting their
family from heart diseases and
using saffola oil
48. “GORGEOUS HAMESHA “ ad
campaigns associating young girls to
their beauty and looks
“Khoobsoorat hai badhte
rehna” and many more….
49. Giving insights from the Kotler
management book of theories
involved in article and case
study
50. Importance of marketing
Marketing helps firms to prosper financially and survive in the face of
an unforgiving economic environment . Financial success often
depends on marketing ability
holistic marketing
It is a concept based on development design and implementation of
marketing programs , process and activities that recognize their
breadth and interdependencies
52. Building customer value , satisfaction and loyalty
Businesses succeed by getting , keeping, and growing customers.
The only value your company will ever create is the value that comes
from customers
core competency
A core competency has three characteristics: (1) It is a source of
competitive advantage and makes a significant contribution to
perceived customer benefits. (2) It has applications in a wide variety of
markets. (3) It is difficult for competitors to imitate.
53. What is brandand role of brand
A brand is thus a product or service whose dimensions differentiate it in some
way from other products or services designed to satisfy the same need . These
differences may be functional , rational , or tangible—related to product
performance of the brand. They may also be more symbolic, emotional, or
intangible—related to what the brand represents or means in a more abstract
sense.
56. BRANDEQUITY
BRANDEXTENSION, BRAND PORTFOLIO
AND BRANDREINFORCEMENT
The brand portfolio is the set of all brands and brand lines a
particular firm offers for sale in a particular category or market
segment.
firms have decided to leverage their most valuable asset by
introducing a host of new products under their strongest brand
names.
BRANDVS LINE EXTENSION
Wine brand
CHATEAU DE
VALLOIs in the
article was
struggling with
these terms
57. BAVARIAN MOTOR WORKS is niche
marketer and a luxurious brand but
it has also extended its brand perfectly
maintaining its exclusivity
Instead of losing its luxurious
image CHATEAU DE VALLOIS in
the article could have opted for
extension in exclusivity
58. • Product-feature specialist. The firm
specializes in producing a certain type of
product or product feature.
• Quality-price specialist. The firm
operates at the low- or high quality ends of the
market .
• Service specialist. The firm offers one or
more services not available from other firms .
CHATEAU DE
VALLOIS IN THE
ARTICLE FALLS IN
THIS NICHE
MARKETING
CATEGORY
Both quality-price and serivce
specialist nicher
NICHE MARKETING SPECIALIST
59. End-user specialist
The firm specializes in one type of end-use customer
. For example , a value-added reseller (VAR)
• Customer-size specialist. The firm
concentrates on either small, medium-sized , or
large customers.
• Specific-customer specialist. The firm
limits its selling to one or a few customers . Many
firms sell their entire output to a single company ,
such as Walmart or General Motors.
60. MANAGING LUXURY MARKET
Luxury products are perhaps one of the purest examples of branding, because
the brand and its image are often key competitive advantages that create
enormous value and wealth for organizations .
Marketers for luxury brands such as Prada, Gucci, Cartier, and Louis
Vuitton manage lucrative franchises that have endured for decades in what
some believe is now a $270 billion industry.
The common denominators of luxury
brands are quality and uniqueness