INTEGRATED MARKETING COMMUNICATION

ASSIGNMENT

Department of Marketing, Xavier Institute of Social Service, Ranchi

SUBMITTED TO
PROF. PINAKI GHOSH

SUBMITTED BY-:
Akhilesh Mishra (roll no. 6)
Rashmi Sinha (roll no. 40)
Anumita Dash (roll no. 46)
Harshal Singh (Roll no. 56)
Shashi Singh (Roll no. 57)

1-IMC at Bangur Cement

1.1 ABOUT THE COMPANY

Bangur cement started with a vision to be the most effective and efficient
cement brand of the country. As in Bangur Cement, SCL aimed at providing
the best quality cement that ensures customer satisfaction. The Bangur Cement
is advertising with a tagging saying SASTA NAHI SBSE ACHHA.
To serve with immediate and prompt services, Bangur Cement established a
grinding capacity at Aurangabad in Bihar, which is just 110km from the
capital. Excelling in the quality, price, availability and packaging of the
products, SCL aspires to be the first choice of the consumers. The Bangur
Cement Plant is one of the most modern and sophisticated plants in the India
equipped with state-of-the art German Technology.
Following factors makes Bangur Cement, the SCLs premium brand: Best quality of Limestone
Better quality control- Clinkerisation and superior cement grinding
makes the quality of the brand one of the best in the industry.
State-of-the-art technology:- The plant has been set up in the technical
collaboration

with

internationally

acclaimed

German

Cement

manufacturer.
In line with its marketing strategy, Bangur Cement realized sales
predominantly in trade segment. The brand contribution registering

1.25 lac MT sales out of the 9 lac MT. in fact, trade sales accounted for
98% of the total sales of Bangur Cement while non trade sales was just
2%. Bangur Cement registering its 23% sales of its total sales in its home
market, Bihar. By selling within a smaller radius, the company was able
to notch higher net realization because of lower logistics.

1.2 MARKETING COMMUNICATIONS MIX

The eight major modes of marketing communications mix are:
1. Advertising
2. Sales Promotion
3. Events and Experiences
4. Public relations and publicity
5. Direct marketing
6. Interactive marketing
7. Word-of-mouth marketing
8. Personal selling
Company communication goes beyond these specific platforms. Hence, every
brand contact delivers an impression that can strengthen or weaken a
customers view of a company.
In the following figure 1 shows, marketing communications activities
contribute to brand equity and drives sales in many ways: by creating
awareness of the brand, linking the right associations to the brand image in
consumers memory, eliciting positive brand judgments and feelings, and

facilitating a strong consumer-brand connection. Company must consider the

following:

1.3 INTEGRATED MARKETING COMMUNICATION STRATEGY

DEVELOPMENT
In developing IMC strategy there are certain steps that Bangur Cement follows.
In promoting their brand and new offer the company tries to implement that
effectively to remain successful in the competition. The sequence of developing
effective communications that Bangur Cement follows are describe below:
Identify the target customers: The process starts with a clear audience in
mind. In launching and promoting the new offer or products at first
Bangur cement identifies who are there target customers. They target for
both their existing customers and potential buyers, current users,
influencers. The customer group can be general customer, corporate
customer or government. As such Bangur cement currently has two
offers, so they design their communication strategy one for their general
customer and other for their retailers.

 Designing the communication Objectives: After determining the target

customers Bangur cement formulates their communication message.
And they try to do it in a creative way so that it reaches and adapts to
the customer easily. In designing the communication massage effectively
Bangur cement goes for different ad agencies under the supervision of
the brand department. The company gives responsibility to design the
communication massage to the ad firm to ensure that the massage
appeals, theme or ideas are different and sustainable.
Communication Channels: Non-personal communication channel is
used by Bangur cement in order to select the communication channels.
It includes media, sales promotion, events and public relations to affects
the customers behavior directly. In different phases the company uses
the communication channels to send the message.
Setting total communication budget: Determining total promotion
budget is a quite difficult task since company has to set it before the
promotional campaign. In setting up total promotion budget and mix
Bangur cement uses the combination of affordable method and
percentage-of sales method. At first the company sees how much they
can afford on promotion and setting the budget at a certain percentage
of the unit sales price. The company does it to manipulate promotion
spending, selling price and profit per unit.
Deciding on media mix: Bangur cement allocates their marketing and
promotion budget on the following communication mixes

Each of

these communication mixes that has its own characteristics and costs
are briefly shown below

Advertising

Sales

Public

Personal

Others

Electronic and

Bill Board

Sponsoring

Entertainment

CSR

Newspaper

Board

Cultural

Greetings

Community

Print Media
Brochure &
Booklet

Notebooks
Press Release

Promotion

Relations

Shop sign

Events

Wall

Programs

paintings

Masons

Shop

Workshops

Selling

Exclusive Gifts Donation

Tours

Unsought

Relations

Expenses

Decoration
Quarterly
Dealer

Meetings

Bonus, Gifts

Promotion Budget of Bangur Cement in 2013-14:-

Promotion Budget
1%
8%
Sales Promotion
38%
26%

Advertising
Public Relation
Personal Selling
Others

27%

 Managing the integrated marketing communications: Having set the

promotion budget and mix, in managing the integrated marketing
communication process Bangur cement does not use such tactics.
However, the company evaluates the role of various communication
disciplines after ending of each promotion campaign. But Bangur
cement needs to check, control and combines the communication
disciplines so that it provide clarity, consistency, and maximum impact
through the accurate integration of massages.
The company currently relying on traditional communication tools using
media companies and ad agencies to ensure all the promotion tools are
integrating and working properly. The company analyzes the trends, audit the
communications spending on a regular basis and they appoint marketing
consultant to monitor the promotional programs. In implementing the IMC the
method that company use is because it is quite easier and cost effective way to
manage and control the overall communication process.

1.3 CURRENT MARKETING COMMUNICATIONS OF BANGUR CEMENT

To establish their brand, Bangur Cement is currently using some
communication mix. They are conducting few consumer promotions and few
trade promotions. The activities that Bangur Cement has taken are following:
Media Advertising:

Bangur Cement broadcast their commercial

advertisement on Television. They use Brochure and booklets, posters

and leaflets to create awareness.

The commercial TV ad is shown

through 3 different animated commercials.

Direct Response Advertising: Bangur Cement uses direct response
advertising for their corporate clients. They use mailing, telemarketing,

fax mail or other communication tools to communicate directly to their

corporate customer. Sometimes this communication tool is also use for
general customers as well on specific occasion.
Outdoor Advertising: Bangur Cement is also engage in huge outdoor
advertising. They have some billboard ad in Patna city and some
billboards are in different districts. They are more concentrating in High
wall and low wall painting beside highways. The company has huge
number of shop paint in whole of Bihar. They also provide signboards
and light box to the dealers and project boards for the developers.
Consumer Promotion: To promote sale the company has credit facilities
for its distributors. Bangur Cement give short term incentives (during
the off peak season) to their customers. Besides this the company also
provides some gifts to its retailers and distributors.
Trade Promotion: Bangur cement provides certain benefits to its
distributors and retailers. Various Incentives and Discounts are given to
the dealers and retailers. The dealers who perform well are especially
felicitated by the Vice president Marketing under Dealer meet programs.
And on the basis of their performances the company also considers to
increase their Credit limit.
Publicity or Public Relations: Publicity or Public Relations: Bangur
Cement spends a lot in company publicity and public relations. For
publicity they have company brochure, leaflet, banner and they provide
these to the cement shops all over the Bihar Market. Also company has
publications, community relations in the industry.
In maintaining public relations company provides T-shirt, note book,
calendar, slip pads, umbrella, shopping bags and other stuff to company
publics. Company organizes mason meeting, dealer meeting, and
engineer meeting on monthly and quarterly basis at different districts.

Company arranges workshop on house building, and other different

programs that helps to increase the bondage within company various
publics.

Sponsorship and Event Marketing: Bangur Cement has always

sponsored different kinds of program which is related to buildings and
architectures. Recently Bangur Cement sponsored the Film Brothers, to
create awareness at the National Level and Its increasing Presence over
the States of India. Bangur Cement sponsors a Bhojpuri Singing
Competition in Patna to create awareness at the Domestic Level.

1.4 EVALUATING IMC PROGRAMS OF BANGUR CEMENT

We all know managing and coordinating the entire communications process
calls for integrated marketing communications (IMC); assessing the collective
impact of an IMC program is very important.
By the following six criteria we tried to examine whether Bangur Cement
communications are truly integrated or not and its discrepancy.
Coverage: Bangur does communications in all their distribution zones
and also distributes their brand tools in that zones. Though its
communications is all over the divisions but it is limited and the
communication options are not adequate enough to reach the target
market. For example, the market communications are heavily based on
Patna City and areas where their sale is high. Thus at present the
distributed brand communication tools do not covers their targeted
market.

 Contribution:

Through

Bangur

Cement

present

marketing

communications options it is able to create awareness, brand image and

exposure to enhance sales. However, it can not produce their desired
customer response using their traditional communication options. As a
result, their sales target is fluctuating since promotional campaign is
only based on the specific seasons.
Commonality: Bangur Cement uses its communication options to its
common associations so that it reinforces the common meaning
consistently and cohesively. Here, different communication options
should be used to reach its current and additional associations so that
the massage can be recalled and easily linked the brand in memory. It is
important to remain competitive in the market.
Complementarity: Though different brand associations are used by
Bangur Cement to complement with communication options that
eliciting customer response. Nonetheless, particular type of brand
associations linkage with the communication options that complement
with the marketing program is still missing at Bangur Cement. The
company has to emphasized brand associations and linkage across its
communication options.
Versatility:

Bangur Cement gives communication program taking

different customer group in mind so that they behave in the desired

response. Here, the companys problem is the communication program
is not so robust to reach different customer group. The company has to
arrange programs that effectively communicate to customers who have
or have not seen other communications.
Cost: Bangur Cement weigh out all their communication cost to do
effectively and efficiently all their communication program. The
company has to increase expense in their promotion to the above

criteria to implement the marketing communication options in a right

way.

1- Cadbury dairy milk

Cadbury is a British multinational confectionery subsidiary company wholly

owned by American company Mondelz International since 2012. It is the
second largest confectionery brand in the world after Wrigley's. One of the
best known British brands, in 2013 The Telegraph named Cadbury among
Britain's most successful exports. It is famous for its Dairy Milk chocolate,
the Creme Egg and Roses selection box, and many other confectionery
products. Cadbury was established in Birmingham, England in 1824, by John
Cadbury who sold tea, coffee and drinking chocolate
COMMUNICATING STRATEGY
To promote the new dairy milk megabrand, Cadbury implemented
comprehensive 360 degree support campaign. This involved a highly
coordinated set of promotional activities across various communications
channel each activity bearing the same message. This approach is known as
integrated marketing communications and ensures that consumers receive a
clear and consistent message about a brand.

Advertisement
Television, the print media and posters have been the main media of
communication for Cadburys advertisements. Cadburys TV campaign was
devised illustrating the essential consumption occasions. For example, the eight
weeks campaign of Cadburys TV advertising to be showed in the evening time
was seen by its target audience and it had reached 85% of the market. In
addition, there are other types of advertising form being used in Cadbury
which is the trade advertising, informative advertising and the consumer
advertising. Cadbury has launched a lot of periodic trade advertising to
monitor quality checks and educate its retailers as well as promoting sales. For
the purpose of inform and remind customers, Cadbury published an
advertising regarding the facts about Cadbury in 55 trade publications.
Cadbury never ignore the importance of consumer advertising that people can
see many Cadburys advertising in newspaper, magazine, and Cadburys
website and so on.

Transition of Cadbury ads from older days to present days

1) Old Ads
Focuses on cricket.
Spread joy

 Focusing on different professions

2) New Ads
More trendy
Teenage oriented
More events oriented.
Review of Past Promotional Programs -

Campaign

Target

Shift over the

Promo

Real Taste of Life

Child in adult

From just for kids

TVC, Print,

years

Mechanisms

to the kid in every Hoardings

adult

Khanewalon ko

khane ka bahana

Wider masses

chahiye

Appeal to a wider
mass based on

age, gender, etc.

TVC, Print,
Hoardings

Pappu Pass Ho

Youngsters

Miss Palampur

Rural masses

Shift to smaller

TVC, Hoardings

Kuch Meetha Ho

Conversion of

This was an

TVC, Print,

to chocolate for

and Cadbury

Media

Gaya

Jaaye

sweet consumers

TVC, Hoardings

packs

innovative idea

special occassions went ahead with

Hoardings, Social

the Celebrations
packs with these
ads

Khane ke baad

Targeting the

From converting

TVC, Print,

Meethe mein

habit of Indians to sweet consumers

Jaaye

after meals

Kuch Meetha Ho

have desserts

on special
occasions

Hoardings, Social
Media

Cadbury now
tried to sweet

consumption for
dessert to

chocolate as well
Shubh Aarambh

Targeting the

Converting yet

TVC, Print,

that anything

of sweet

Media

belief of Indians

another segment

begun by having

consumers i.e.

provides good

any work

something sweet
luck

Hoardings, Social

before the start of

CUSTOMER ANALYSIS

Who are the customers?

Cadbury has targeted different segments of consumers through their various
ad campaigns. From targeting kids they extended their target audience to 'the
kid in every adult' through their 'Real Taste of Life' campaign. Next they
targeted the youths through their 'Pappu Pass Ho Gaya' campaign and the
rural market through their 'Miss Palampur' campaign. The last few of their ad
campaigns have specifically been targeted towards converting consumers of
sweets to chocolates and this they have done extensively by giving consumers

the idea that chocolates could substitute sweets in ways that consumers could
never think of like on special occasions or for dessert after meals or for the
auspicious start of something important.

What do they buy and how they use it?

Purchase as a gift - Cadbury Dairy Milk Celebrations

As a snack

As a dessert

Where do they buy?

Leading supermarkets and 'big chains' stores

Kirana stores

How has Cadbury tried to capture these buyers?

For those shopping at malls and supermarkets Cadbury aimed at as

many as possible using big boxes of chocolates stored near billing area to
stimulate impulse buying

They also used the concept of eye level shelves to a great extent to

capture the attention of consumers

When do the consumers buy?

Impulse buying

Festive season

Special Occasions

How do they choose?

Consumers are influenced to buy a particular brand/product based on the
following criteria in the order of importance:

How they respond to marketing programs?

Consumers have till date responded very well to Cadbury's marketing
campaigns. With every new campaign, Cadbury's market share has increased
and Cadbury has been able to capture the audience targeted. Also brand
loyalty has increased with the promotional campaigns.
ANALYSIS OF COMMUNICATION PROCESS
Real Taste of Life
Launched in 1994,this campaign was awarded the Campaign of the century
award
Communication Objective- Through the ad, they wanted to convey the
message that there is a child in each one of us and they wanted to appeal to
that child, since children loved eating chocolates. The ad was meant to create a

particular image in the eyes of the customer and successfully communicate

what the product conveyed.
It

appealed to the child in every adult

and Cadbury Dairy Milk became the perfect expression of

'spontaneity' and 'shared good

feelings'

In every adult there is a child let that child express

to temptation and satisfy

itself give in

his or

her

desire to sink teeth into a smooth creamy delicious

chocolate This approach appears to be unique to Cadbury.
What was Communicated- The Real Taste of Life was launched in the 1994. It
was an attempt to capture the child-like spontaneity in every adult.
From the depiction
an old man offeringhis wife a Dairy Milk chocolate to the dancing girl in crow
ded stadium, it all reflected the impulsiveness and the
spontaneity of the child in the adult.
Why they communicated- They wanted tore-create the image of a child in the
eyes of the adults, remind them of their childhood days and create an image
that Cadbury essentially stood for childhood and stimulate them to buy
chocolate so as to make them remember the childhood days.
What was achieved- A change in Consumer mind set that chocolates were
mostly for kids and young people. Through the campaign, adults realized they
could and should enjoy chocolates as well. Distribution was expanded and

smaller packs introduced at more affordable prices. "It led to 20% plus growth
for 3 to 4 straight years. The category doubled in size."
Khanewalon ko khane ka bahana chahiye
Communication objective- Through the ad, it was aimed at widening the
chocolate consumption among the masses and making sure the product

reached a wider group of people, based on age, sex etc. The campaign was
built to increase social acceptance of chocolates among adults

What was Communicated- The ad reflected the fact that Cadbury could be

available and eaten by all groups of people. In the ad, an elderly lady, middleaged man, newly married bride, young guy and a child are all seen enjoying

Cadbury, which showed that all people, irrespective of their sex and age could
enjoy it.

Why they communicated- The ad was meant to stimulate purchase intentions

and enable the reach of Cadbury to a wider audience.

What was achieved- A widening of audience, which meant a wider market for
the product.

Kuch Meetha Ho Jaaye

Communication Objective- The ad was meant to portray Cadbury as

something which can be had on all celebratory occasions. It projected

chocolates as a substitute to mithai (sweets) and cheered people to have

chocolate on every joyous occasion.

What was communicated- The basic depiction was that the ad showed that

chocolate can be showed as being enjoyed during Diwali and any other
celebratory occasions.

Why they communicated- The idea was mainly to develop preferences among
people for chocolates to sweets and stimulate the demand for chocolates in
festive and joyous occasions.

What was achieved- Depiction of chocolate as a substitute to sweets and the

fact that it can be enjoyed in joyous occasions too.
Pappu Pass Ho Gaya
Launched in 2005,the interactive campaign for "Pappu Pass Ho Gaya" bagged a
Bronze Lion at the prestigious Cannes Advertising Festival 2006.In 2005,
Cadbury in India almost doubled the business in three years. Sales growth was
22% - the compounded growth rate over the past three years from 2005 to
2008.
Communication Objective- The ad targeted youngsters and has become part of
street language. It has been adopted by consumers to express joy in a moment

of achievement/success. The ad showed association with little joys of life. The

campaign urged people to celebrate every little moment of happiness in their
life with a chocolate.

What was communicated- The ad showed the coming out of results and the

passing of a person called Pappu, who had failed repeatedly. All youngsters
were seen having chocolate to enjoy their moment of success. Thus, it
predominantly targeted youngsters.

Why they communicated- The ad was meant to reach out to youngsters and
encourage them to buy chocolates.

What was achieved- Enabling Cadbury to be portrayed as a product which

can be had by youngsters to celebrate their successes.

Miss Palampur
Launched in the year 2004
Communication Objective- The ad targeted the rural parts of India. It focused
on Adults and values, like Sacred Cow campaigns aimed at rural India did fare
well. Campaigns aimed at rural India did fare well. The share of Cadbury
increased by more than 20% in rural India. The share of Cadbury increased by
more than 20% in rural India. The brand further strengthened its positions
with the core audience. The brand further strengthened its positions with the
core audience.
What was communicated- It shows a villager enjoying the success of his cow
becoming Miss Palampur. The entire village joins in the celebration, with all
having chocolates.

Why they communicated- The ad was meant to increase the reach of the
product to rural areas and develop preferences for chocolates in the rural
areas.

What was achieved- Enabled Cadbury to be shown as a product which can be

enjoyed in rural areas too.

Shubh Aarambh
Launched in 2010, drawing lines from traditional Indian customs of having
something sweet before embarking on something new.

Communication Objective- The ad was specifically aimed at indicating a shift

from the notion of celebrating happy occasions with chocolate to the happy
occasions with chocolate to the concept of anticipating concept of something
good after consuming the chocolate, a substitute for mithai. The campaign is
aimed at consumers across sectors, and is supposed to have a balanced appeal
across all tiers.

What was communicated- The ad depicted the starting if friendship over

having Cadbury and how a bonding developed over it.

Why they communicated- The ad was meant for

the core group, i.e.

consumers in the age group of 15-35 years. The ad was established to remind
consumers about the utility of Cadbury

What was achieved- Enabled Cadbury to re-establish itself in the eyes of the
core target customers.

Cadbury's Dairy Milk Silk Bubbly launches with another playful, loving
exchange

Kiss me, close your eyes signature song in the brand's communication, the
film sees a couple filling balloons in a room. The boyfriend fills balloons one
after the other and offers it to the girl, who ties the knot. She decides though to
let the air escape once, meaning he will have to blow it again. He reveals a bar
of Dairy Milk Silk Bubby. He pretends to blow into it and offers it to her. She is
surprised to find it bubbly inside and takes a bite. When she inflates her
cheeks in jest, it's his turn to playfully pop the air out of them. The lighthearted
and loving exchange continues.
Profit & Loss account (in Rs Crores)
Dec '05

Dec '06

Dec '07

Dec '08

Dec '09

1006.02

1149.97

1441.92

1751.24

2045.08

14.3%

25.4%

21.5%

16.8%

Income
Sales Turnover
Sales Growth
Excise Duty

126.24

91.73

148.45

162.65

110.71

Net Sales

879.78

1,058.24

1,293.47

1,588.59

1,934.37

17.87

8.71

7.68

25.07

12.67

10.44

-2.54

17.29

51.32

-16.28

908.09

1,064.41

1,318.44

1,664.98

1,930.76

246.22

441.53

563.06

732.53

832.28

19.62

20.83

25.3

29.7

37.25

94.38

93.93

107.36

130.22

150.62

Other Income
Stock

Adjustments
Total Income
Expenditure
Raw Materials
Power & Fuel
Cost

Employee Cost

Other

Manufacturing

138.85

57.63

76.61

96.01

6.52

SG&A expenses

292.11

302.42

366.67

432.91

624.19

29.0%

26.3%

25.4%

24.7%

30.5%

791.18

916.34

1,139.00

1,421.37

1,650.86

99.04

139.36

171.76

218.54

267.23

116.91

148.07

179.44

243.61

279.9

1.7

2.22

2.03

5.2

1.72

115.21

145.85

177.41

238.41

278.18

34.07

33.41

34.32

36.52

43.83

81.14

112.44

143.09

201.89

234.35

19.23

Extra-ord

81.14

112.44

162.32

201.89

234.35

Tax

35.19

43.62

44.67

36.11

45.73

45.95

68.81

117.65

165.78

188.63

Expenses

SG&A as % of

sales

Total Expenses
Operating
Profit

PBDIT
Interest
PBDT
Depreciation
Other Written
Off

Profit Before
Tax

Extra-ordinary
items

PBT (Post
Items)

Reported Net
Profit

OVERCOMING THE WORM CRISIS USING IMC

The discovery of worms in some samples of Cadburys Chocolate in early

October 2003 created one of the biggest controversies in India against a
Multi-National reputed for being a benchmark of QUALITY.
The state Food and Drug Administration has ordered seizure of Cadbury's
Dairy Milk chocolates from all over Maharashtra after worms were found in
two of them in Mumbai.
The Food and Drug Administration had then seized the company's stocks and
the Cadbury India management had explained it was bad storage practices by
retailers and distributors that had led to the worms. Cadbury India's sales fell
following the discovery. The "worms controversy" came at the worst time.
The next few months were the peak season of Diwali, Eid & Christmas.
Cadbury sells almost 1,000 tonnes of chocolates during Diwali. In that year,
the sales during festival season dropped by 30 per cent.
The controversy created an deep adverse impact on the company with their
sales not only drastically dipping down, but at the same time allowing the
competitors to establish their foothold and taking maximum advantage of
Cadburys misfortune.

STEPS TAKEN TO SOLVE THE CONTROVERSY

1. NOT DENYING THE FACT
It helped that the Maharashtra Food and Drug Administration had given a
clean chit to the company's two plants in the state. Cadbury went into
overdrive to tell consumers that improper storage of what is essentially a
perishable commodity might lead to worm infestation.
As a result Cadbury improved the packaging and paid more attention to the
way its chocolates were stored by nearly 6,50,000 retailers across the country.
2. TAKING PRECAUTIONS
Following the controversy over infestation in its chocolates, Cadbury India Ltd
unveiled 'Project Vishwas', a plan involving distribution and retail channels to
ensure the quality of its products.
The Vishwas programme was intended to build awareness among retailers on
storage requirements for chocolates, provide assistance in improving storage
conditions and strengthen packaging of the company's range of products.
3. GAINING BACK TRUST
The Big B promoted the Big C in the chocolate business - Cadbury in India.
Amitabh Bachchan has signed on to become the brand ambassador of the
chocolate major for two years.

The Big B FACTOR

The big factor that has pushed up CDM sales is the Amitabh Bachchan
campaign. It helped restore consumers' faith in the quality of the product.AB
played a pivotal role in all communication relating to Cadbury's products and
brands, be it in print, on television or the great outdoors. With the help of its
Public Relations Dept. and advertising agency, it created a campaign which
aimed for both rational and emotional appeal.
RECOMMENDATIONS
To increase the visibility of Cadbury chocolates Cadbury should design
more visible Containers that can be visible from far distance also. As
tradition of impulse buying is increasing day by day specially in
chocolate industry. This kind of design is also cost effective and can be
used both in small as well as in large stores. Design of small container
and its placement can be taken from the following images:-

Like the Container used here to increase the visibility and placement, similar kind
of Container can be used so that rate of impulse buying can be increased.

 Also use of posters by retailers is very less, because of this visibility of the
brand gets affected. So every month there should inspection done
regarding that.
Vending Machines: These High Visibility machines should be launched
in metro as well as in tier 2 cities at some busy locations to increase the
visibility ,thereby increase the probability of impulse buying.

3. Joseph Cyril Bamford (jcb)

3.1 ABOUT JCB

JCB India Limited is a leading manufacturer of Earthmoving and Construction
Equipment in India. Started as a JV in 1979, it is now a fully owned subsidiary
of J.C Bamford Excavators, UK and has five World Class Manufacturing
facilities in India. When it entered Indian market it was by the way of Joint
Venture with Escorts and was earlier known as Escorts JCB Limited. Later on,
JCB purchased the shares of Escorts .
Over the years, JCB India invested more than Rs. 2000 crores in India and
today employs over 5,500 people in India. It has a network of 61 dealers and
over 600+ outlets throughout India which provide Parts and Product Support
to our Customers. Over 6000 Professionally Trained people are employed at
these dealerships. JCB India also has strategically set-up large parts
warehouses across India (Pune, Chennai, Faridabad and Kolkata) for
supporting these Dealerships.
Over the past 35 years JCB has remained committed to India all through; over
the years it launched new India Centric products and opened new factories
with Innovation and R&D. But above all Customer focus and Quality have
been at the core of our operations.

3.2 INITIAL IMC STRATEGY

JCB functions in a B2B market where the major customers are contractors,
mining industries, etc. Even many infrastructural projects are done by using
JCB products by the Government. However, in case of governmental projects
there are tenders taken from different companies and then a rational choice is
made by going through the technical and pricing bids of different companies.
JCB doesnt run any special campaigns for its different products separately. It
follows these strategies for all its products. However, depending upon the
customer base and the market requirements they do bring certain changes.
JCB sells its products through dealers across the country. They have an
extensive procedure of finalising their dealers. These dealers are the major
source of promotion of their variety of products. There are schemes which are
implemented from time to time so that the dealers will stay motivated and will
enthusiastically promote and sell the products. There two types of marketing
strategies followed by JCB round the clock marketing and season marketing.
These promotional activities focus on highlighting the utility and productivity
of the products offered by JCB. The round the clock marketing strategies are:
Corporate identity: JCB follows corporate identity which means that
there are certain specifications regarding the arrangement of the
products and parts for display and the colour schemes. Uniforms are
given to salesmen of the dealers.
The showroom designs are identical across the country giving a very
strong and uniform message about the brand. The showrooms are
different only in terms of the size which depends on the size of the
market they are catering to.

 Demonstrations and trials: The dealers conduct demonstrations of new

products to the strategically important customers or hot prospects. These
are those customers who are leaders or are influencers for others in the
industry and by demonstrating to them and convincing them to
purchase JCB products, others in same industry will also have a greater
chance to purchase the same products. They demonstrate by means of
utilisation.
Many times the machine is given on trial for a period of 10-15 days to a
customer so that he can utilise it and see how useful it is to him.
Demonstrations and trials are conducted for new machines only.
Advertisements: No such advertisements are carried out on national
levels. The dealers put up advertisements in regional newspapers and tv
channels as well as in hoardings. The advertisements given are as per
the requirements of JCB and first they have to get approval from the
marketing department. The cost of this shared between JCB and the
dealership firm on an agreed ratio. Hoardings re mostly shared on a 5050 basis.
Sponsorships: JCB promotes its brand by sponsoring many mega events.
Recently JCB sponsored EXCON in Bangalore. This is held once in every
two years. There are various other events which are sponsored by JCB
like golf tournaments in many places.
Exhibitions: JCB participates in many major exhibitions across the
country. The dealers are also encouraged to participate in regional level
exhibitions. Here various products and designs are displayed and all the
necessary information required by the prospects is provided. The
salesmen are given proper training so that they not only inform but also
give an impressive sales pitch.

 Meets: JCB conducts customer as well dealer meets. Customer meets are
mostly conducted together by the JCB professionals and the dealers of
that region/state. Various products are introduced and promoted to
them. Customer meets involve not just existing customers but also
prospective customers.
JCB conducts dealer meets to make them aware of the products and
encourage them to promote their products. The best performers are
felicitated.
Trade promotions: The trade promotion strategies are adopted for the
dealers as they are the ones who interact with customers and they need
to be motivated from time to time so that keep meeting their targets. The
schemes adopted are Individual and group incentives
Gifts and free/discounted JCB merchandise
Free trips within India and abroad
Public Relations (PR): It is one of the most important tools for brand
promotion used by JCB. It has a separate link for its PR activities from its
website and PR activities are also done by many newspapers.
The seasonal marketing strategies are the strategies that are adopted in
off-season i.e. monsoons as during this mining and construction work is
very less. These strategies are Sales promotion: The major sales promotion scheme that is adopted is
giving heavy discounts to the customers to boost sales. Discounts are
given by the HQ of JCB. Sometimes additional discounts may be offered
by the dealers especially in areas of medium to heavy rainfall.
Warranty period: The warranty period is extended and some dealers
may also offer to give service at a lesser cost.

3.3 CRITICAL EVALUATION OF THE IMC STRATEGIES

The IMC plan of the company can be critically evaluated as follows:
Consistency: Since JCB maintains corporate identity the message that
goes to the customers is consistent. The company ensures that all its
dealers follow the specifications laid down by it so that the message is
not ambiguous. This consistency has helped JCB to gain a good
reputation among its customers.
The advertisements that are given at the regional levels are also in
accordance with the requirements of the marketing department of JCB.
JCB ensure that dealers do not give out information that is not true or is
not consistent with its strategies.
Creating awareness: The promotion of the products and parts is mainly
done by the dealers. The dealers are well aware of the kind of customers
in their region. They get first-hand information about the competitors
performance. With these critically important information available, the
dealers can make a better promotion. By giving demonstrations and
catalogues they make the prospective customers aware about the
product.
Appropriate brand promotions by means of PR activities also help in
creating awareness.
Coverage: JCB has a number of dealers in a particular state who operate
in various regions of that state. So these dealers implement their IMC
strategies and ensure that they are able to communicate to maximum of
its prospective customers through media like regional/local newspapers,
hoardings, personal displays, catalogues, etc.
However, the rural areas were not penetrated to a good extent as no
specific strategies were framed aiming towards the rural prospects.

 Complementarity: The various media that are used to promote the

products are complementary to each other. The advertisements not only
make the customers aware but they also complement sales promotional
activities.
Versatility: Since the customer base of JCB is focused than any consumer
products so the message is also focused and to the point. So the IMC
strategies aim at providing awareness to the customers about the
products and induce sales.
3.4 NEW IMC INITIATIVES
These strategies were introduced in the IMC plan of JCB when they decided to
increase their customer base rural areas and small contractors. These
measures were added to the existing strategies of the company.
Finance companies: JCB dealers across India associate themselves with
many finance companies like SREI Finance, Magma Finance, etc. who
promote JCB machines by giving better schemes that will induce greater
sales. They get subvention (commission) from JCB India for helping to
achieve a given target.
RURAL IMC STRATEGIES
The main objective of rural IMC strategies is to make people aware about the
brand and its products and how it can be cost efficient.
Road shows: Road show refers to presentation of a machine to the people
about the various features and benefits. It is the major way to promote
the products. Due to lack of space in rural areas the machines are not
demonstrated like in case of urban customers.
Here they speak about the products, company and dealers.

 Rural Mela(s): The dealers with support of JCB organise melas where
people from different villages nearby are asked to attend so that the
salespersons can educate them about the JCB machines. This is usually
done when the resources at the dealers disposal is less to conduct road
shows. Here the crowd is more so it becomes easier for them to
communicate about the products.
Sales promotion: More sales promotional strategies are directed towards
rural areas than urban areas. The customers are given more benefits for
spot bookings, which mostly comprises of free insurance and discounts
on price.
Another strategy that JCB dealers are using is by promoting leasing of their
machines. They are promoting sale of their excavators and other machines to
leasing firms and individuals so that they can give out on monthly rentals. This
will increase the sales and will also increase employment. This is promoted
mostly in semi-urban and rural areas. Leasing firms also promote JCB
products.
Some dealers have also started leasing the machines in rural areas so that the
market of the company expands and many small contractors and project
managers can use machines of high quality like that of JCB at a reasonable
cost.
JCB India funds some rural schools and primary health centres in Haryana.
This helps to build a good image of the brand. JCB has used this initiative as a
good way to promote its brand.
CRITICAL EVALUATION OF THE NEW IMC INITIATIVES OF JCB
Coverage: Since these strategies have been formulated aiming at a
specific market segments which are the rural areas and small

contractors there is more coverage of prospect customers. More people

are communicated about the brand and its products.
Consistency: The message that is communicated is consistent as all the
major information is provided by the HQ of JCB India in Haryana. The
dealers do not project the brand differently. Moreover the promotions
that are held are regarding the features about the product.
Versatility: Just like the existing strategies even the new strategies are
highly focused and give the same message. So it is not very versatile.

IMPACT OF NEW IMC STRATEGIES

The proportion of hiring segment in 2005 was 40% of the total sales
which has increased to 60% in 2014. After implementation of rural IMC
strategies the all India sale of JCB increased from approximately 5,500
in 2005 to 19,500 in 2014.
The demand for JCB machines has increased over the years and as a
result many dealership companies are coming up at different regions of
the country.
Earlier this brand was considered to be that for high income customers
or big contractors, mining industries and other industries.

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