SWOT Analysis of stationary product of kores (India) Ltd

SWOT Analysis of stationary product of kores

Strengths:

• Well-established distribution network extending to rural areas.
• Strong brands in the stationary sector.
• Low cost operations.

Weaknesses:

• Low export levels.
• Small-scale sector reservations limit ability to invest in technology and achieve economies of scale.
• Several "me-too’’ products.

Opportunities:

• Large domestic market.
• Export potential.
• Increasing income levels will result in faster revenue growth..

Threats:

• Imports.
• Tax and regulatory structure.
• Slowdown in rural demand.

The Long term Impact of Advertising

The Long term Impact of Advertising:

Strategies are builds to reap the benefits for longer period of time; same is true in sales promotion strategies. Let us see impact of advertising effort and study the impact over a longer time period e.g. 4-6 months or even a few years after a advertising  campaign. 

The result showed that consumer promotions for leading brands of established packaged products had no after-effects on the brand’s sales or repeat buying loyalty. The extra sales of a brand while promoted came virtually all from the brand’s existing long-term customer base for which the experience of buying the promoted brand was nothing new.

It is found that although the short term effects of promotions are strong; these promotions rarely exhibit long term effects. It is observed that each sales component generally lacked a permanent effect and the effect of promotion was short lived and increase in promotions affected consumers’ stockpiling decisions in the long run. They found that the combined short and long-term elasticity of promotions was zero. The stockpiling induced by a promotion was essentially offset by reduced demand in the long term. Thus increased sales were more a result of sales borrowed from the future than increased  consumption.

Organization of the advertising industry

Organization of the advertising industry

Advertisers – advertising is part of the marketing strategy of any company;

-- no product goes to market without some kind of a marketing strategy

-- this strategy has to include not just advertising by distribution and a plan for sustaining the product in the market

 • National advertisers – see nationwide market for product; this began in modern terms in the 1800s (post Civil War) with growth of mail order catalogues

• Retail or local advertisers – sell to a local (geographic) market

Web is changing local advertising; many finding they can expand their markets – but at what cost?

 Types of advertising

            -- consumer

            -- business to business

            -- professional

Agencies

-- organizations set up to create and place advertising; sometimes located  in-house and sometimes independent

-- Madison Ave. (national, international); local ad agencies

-- seek clients; very competitive

-- full service; media buying; creative boutiques

-- increasing concentration of ownership

Media – final piece of the puzzle

-- traditional – newspaper, magazine, radio, TV

-- non-traditional – point of purchase, direct mail, telephone, telemarketing, movie placements, digital insertions; web targeting

Evaluation media advertising

-- reach – how large is the audience

-- frequency – how many times the message is delivered

-- selectivity – how many potential customers are in the audience

-- efficiency – cost/thousand customers

Online advertising is developing but still one of the big unknowns of the advertising world; many advertisers prefer traditional (old) media, and so do agencies because that's what they're used to.

The advertising campaign

Product

-- product characteristics – what does it do; what's the competition

-- launching

-- positioning and re-positioning

Audience

-- research

-- demographics

Purpose

-- what is the advertising problem

-- what advertising will solve the problem

Medium

-- which medium will bring together the audience and the solution

Follow-up, evaluation

-- did it work?

 Advertising regulation

-- First Amendment (can we really say whatever we want? No)

  • false statements, criminal actions are not protected

-- "caveat emptor" – let the buyer beware

-- "caveat venditor" –let the seller beware

-- Federal Trade Commission

  • broad powers

  • political climate   

Functions and Criticisms of advertising

Functions of advertising

-- selling a product

-- educating people about new products

-- part of economic process, allowing new products to enter market, old products to reposition themselves in market

-- social function

            -- offers opportunities

            -- reflects values

            -- informs

            -- provides major support for media industries

Criticisms of advertising

Before going any further, we should note some of the most common criticisms of advertising. These criticisms have some validity, but they also have some answers. I'll present the criticisms and leave it to you to formulate some of the answers.

• Advertising adds to the cost of products. Part of what we pay for when we buy a bar of soap or a new car is the advertising for that product. What if General Motors stopped spending $2.9 billion a year on advertising and reduced the cost of its vehicles.

• Advertising helps sell inferior products. When you get down to it, this criticism says that advertising lies. It convinces us that products are good when they aren’t. It convinces us to buy an inferior product over a quality product because the inferior product has been advertised more.

• Advertising creates needs and desires that we would not have otherwise. We MUST have certain products that our parents were perfectly happy living without. Advertising, it is argued, often creates these "needs," which aren’t really needs at all.

• Advertising is intrusive. More and more it's getting so that everything has an ad on it – or everything is an advertisement.

            -- sports stadiums

            -- digital placements

            -- movie placements

• Much advertising information is false. Sometimes they are outright lies, sometimes exaggerations, sometimes they leave false impressions, sometimes they don't have anything to do with the product. 

Developing an Advertising Campaign

Developing an Advertising Campaign

Designing a series of advertisements and placing them in various advertising media to reach a particular target market. Seven steps.

1.    Identify and Analyze the Advertising Target.

The group of people for which the advertisement is aimed at, may direct campaign at only a portion of the target market.

Research and analyze advertising targets to establish an information base for a campaign. Generally increase advertisers knowledge about their target--the more effective the campaign

2.    Defining Objectives.

What the firm hopes to accomplish from the campaign, should be clear, precise and measurable, can help measure the success at the end of the campaign. Use a benchmark.
At what stage is the target market in the Product Adoption Process. What are the goals of the campaign...to increase purchases, to generate traffic in the retail store etc.

Demand oriented objectives vs. image oriented objectives Increase product/brand awareness.

3.    Determine the Advertising Appropriation

Total amount of money that a marketer allocates for advertising in a specific period.

Objective and Task Approach determine the objectives, then list the tasks needed to achieve the objectives.

Percent of Sales Approach Sales create marketing?! What happens when the products sales are declining.

Competition Matching Approach Other companies have different advertising objectives.

Arbitrary Approach determined by high level executives, Delaware MBA Program

4.    Creating an Advertising Message

A function of the product's features, uses and benefits must be aware of the characteristics of target market, different message to different target market. Dependant on objective of the campaign.

5.    Developing a Media Plan

Sets forth the exact media vehicles to be used and dates and times of ads. Effectiveness of plan determines how many people in the advertiser's target will be exposed to the message. Need to select the media to be used and dates and times ads appear.

Primary goal--reach the highest # of people (within the advertiser's target) per $ spent. Achieve the appropriate message reach and frequency for the target audience while staying within the budget.

Various Media

TV Channels/programs

Sponsor cable channels

Radio, Becoming more segmented

Magazines, Lead time considerations, also pass along rate, subscription plus news agent sales.

Newspapers, Local vs. national

Direct Mail, Evolution of Database marketing, able to narrowly target with DM.

Outdoor, Billboards Atlanta is most billboard per capita city.

Placed-Based, Schools, also sponsor educational programs, Supermarkets, Health Clubs, Dining Halls. Intrusive..."Only go where you are wanted!!". Target market is known...not assumed.

6.      Executing the Campaign

a.     Requires extensive planning and coordination. Advertising Agencies, production costs, research organizations, media firms, printers, photographers, and commercial artists etc. Detailed schedules are needed to insure everything is accomplished on time.

7.    Evaluating the effectiveness of the campaign

Measure the achievement of the objectives, assessing the effectiveness of the copy etc., and the media.

Typical consumer is bombarded with about 300 advertising messages/day, 109,500 per year. 80% of people cannot remember a typical ad one day after seeing it. NEED CREATIVITY!?!?
Pretests before campaign, use a consumer jury. During the campaign, "inquiries"-coupons numbered.
Posttests after the campaign, use consumer surveys to measure the change in communication objectives, change in sales or market share. Cannot be precise due to the environment.
Use recognition tests to determine the degree to which consumers recognize advertisements.
Recall evaluation, consumers are asked what they have seen lately. Aided or unaided.