Chapter IV. Societal Marketing

Transcription

1 Chapter IV Societal Marketing

2 Evolution of Brands with understanding buyers perceptions of risk, followed by developing and presenting the brand in such a way that buyers feel minimal risk. To overcome the problem of shifting through large amounts of information, brands are used as shorthand devices by consumers to recall from memory. At the point of purchase, consumers are able to recall numerous attributes by interrogating their memory. With the appearance of manufacturers brands at the turn of this century, consumers began to appreciate their value and started to ask for them by name. Producers of inferior goods realized that to survive they would have to change. Some firms began to regard the prime benefit of brands as being that of legal protection, with the result that a new category of branding appeared. Within this group of brands, marketers direct their efforts towards effective trademark registration along with consumer education programmes. Brands are treated as strategic devices. The brand equity is measured. The forces affecting the future of the brand are evaluated. The brand needs are identified so that the brand can be successfully protected and achieve the desired return on investment. Since brands are treated as a strategic device, a considerable amount of marketing analysis and brand planning is required. Marketers are devising number of strategies to position their brand. In this era, the research is carried out. 41

3 CHAPTER IV SOCIETAL MARKETING 4.1 Societal Marketing Concept Social marketing began as a formal discipline in 1971, with the publication of "Social Marketing: An Approach to Planned Social Change" in the Journal of Marketing by marketing experts Philip Kotler and Gerald Zaltman.1 2Craig Lefebvre and June Flora introduced social marketing to the public health community in 1988 where it has been most widely used and explored. They noted that there was a need for 'large scale, broad-based, behavior change focused programs' to improve public health (the community wide prevention of cardiovascular diseases in their respective projects), and outlined eight essential components of social marketing that still hold y today. They are: A consumer orientation to realize organizational (social) goals An emphasis on the voluntary exchanges of goods and services between providers and consumers Research in audience analysis and segmentation strategies 1 Philip Kotler and Gerald Zaltman, Social Marketing: An Approach to Planned Social Change, Journal of Marketing, 1971, pp : Craig Lefebvre and June Flora, Social Marketing and public health intervention. Health Education and Behaviour, 1988 pp

4 The use of formative research in product and message design and the pre testing of these materials An analysis of distribution (or communication) channels Use of the marketing mix - utilizing and blending product, price, place and promotion characteristics in intervention planning and implementation A process tracking system with both integrative and control functions and A management process that involves problem analysis, planning, implementation and feedback functions. A social change campaign is an organized effort conducted by one group (the change agent) which attempts to persuade others (the target adopters) to accept, modify, or abandon certain ideas, attitudes, practices or behavior. There has been increasing efforts to ensure social marketing goes 'upstream' and is used much more strategically to inform both 'policy formulation' and 'strategy development'. Social marketing uses commercial marketing theories, tools and techniques to social issues. Social marketing applies a customer oriented approach and uses the concepts and tools used by commercial marketers in pursuit of social goals like Anti-Smoking- Campaigns or fund raising for NGOs. The primary drive for ethical business and corporate social responsibility came from United Sates and Europe in the '80s and '90s, from campaigns run by pressure groups such as Greenpeace and Friends of the Earth. The mid '90s were the watershed years for the new consciousness in international corporate polity. This was the time when two prominent MNCs were compelled by 'ethical market forces' to re-orient their business attitudes. In 1995, Shell dumped its Brent Spar oil platform in the North Sea. Public agitation in Europe was so intense. In Germany sales of Shell oil' fell by 70 per cent within a fortnight. Similarly, Nike, the 43

5 shoe and apparel giant, ran a campaign against child labour and worker exploitation in many of the 700 factories across 40 countries where Nike worked with subcontractors. In the early 90s, Greenpeace commissioned a unit in eastern Germany to manufacture a CFC-free refrigerator. Within six months, mainstream manufacturers in Germany were manufacturing identical fridges. It was in the post-war period that the character and nature of business began to change in the western world, with proprietary firms taking on corporate structures. By 1998, there were 45 registered MNCs and the income of the top 10 MNCs was higher than the GDP of over 50 countries. In the changing political paradigm, the market has begun to play a crucial role in shaping the priorities and inclinations of the State and society. There was a subtle shift from a State-centered polity to a market-centered polity.'1 In this era, the research is conducted to link the societal marketing deeds with the enterprise brand resonance. 4.2 Case ofitc ITC ranks among India s top 10 most valuable (Company) brands. ITC has undertaken Project Classmate" as a part of its corporate social responsibility. This project aims to provide access to primary education and retain students in primary and middle schools in 30 schools in the Coimbatore district. ITC is targeting students by customizing notebooks for schools under the 'Classmate' brand name. For every two Classmate Notebooks sold, ITC contributes Re. 1 to its rural development initiative that supports, among other projects, primary education in villages. ITC continues to blend its core capabilities to market a growing range of education and stationery products. ITC enlarged its presence in the writing, printing and copier papers segment. The Coimbatore unit focuses entirely on recycled boards, servicing 3 John Samuel, Anil Saari, Corporate Social Responsibility : Background & Perspective, The Business of Social Responsibility, Books for Change, Bangalore; 2000, pp : 98 44

6 requirements for both grey-back and white-back recycled boards. ITC straddles the entire spectrum of paperboards - from 100% virgin, food-grade boards to 100 % recycled, eco-friendly boards The ITC web portal was launched in July 2004 and it has a loyal, young user-base. Targeted at young children, the website is populated with games, quizzes, downloads and other fun activities. ITC reaches out directly to consumers with its Wealth Out of Waste (WOW) campaign through social welfare a group,that has been successfully implemented in select locations. The Coimbatore Corporation s burden of solid waste disposal was reduced when ITC Limited buys all paper waste and plastic bags from residents in the city on June This is being done through a social welfare group Residents Awareness Association of Coimbatore (RAAC). Table 4.1 shows the societal marketing deeds of ITC. TABLE 4.1 Societal Marketing Deeds of ITC Ltd. S.No Societal Marketing Deed' No. of Programs 1 Cause related marketing 53 2 Web Blogs 16 3 Green marketing 8 4 Social Group Endorsements 9 Source: The above table reveals that ITC Ltd is involving in more number of cause related marketing campaigns. 4.3 Case of Nestle India Ltd Nestle India is a subsidiary of Nestle S.A. of Switzerland. Nestle India manufactures a variety of food products such as infant food, milk products, beverages, prepared dishes & cooking aids, and chocolates & confectionary. Some of the famous brands of Nestle are nescafe, maggi, milkybar, milo, kit kat, bar-one, milkmaid, 45

7 nestea, nestle milk, nestle slim milk, nestle Fresh 'n' Natural Dahi and NESTLE Jeera Raita. Nestle setup its operations in India as a trading company in Nestle in India is manufacturing and marketing brands in milk, infant dietetics, culinary, cereals, beverages, confectionary and chilled dairy. In 1967, Nestle set up its next factory at Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the area into soluble tea. Nestle opened its third factory in Nanjangud (Karnataka) in Thereafter, Nestle India opened factories in Samalkha (Haryana), in 1993 and two in Goa at Ponda, and Bicholim in 1995 and 1997 respectively.nestle India Ltd is using the concept of creating shared values for society and investor by means of going beyond consumer benefit. Creating value among the people is a practice that primarily Nestle started in order to create a value among their shareholders and gradually became a fundamental in their business strategy. Their service to the society shredded upon everyone who is involved with them in their business. It includes the farmers who supply nestle, employees, consumers and the community. The strength of the Nestle brand is the result of taking relationship with society and building a brand value based in creating shared value. Nestle increasingly focused on providing affordable, nutritious foods to lower income people and opened state of the art factories in rural areas. As a green marketing initiative, the Nestle Policy on the Environment was first published in 1991.Through this, the company has drastically reduced the usage of natural resources and the amount of waste dumped from their operating units. The Nestle factory has been awarded a consent certificate from the Punjab State Pollution Control Board. In 1996 the Nestle environmental management system was created to provide a common coherent framework for environmental management at all levels of the organization. As a part of social group endorsement, Nestle has supported the dairy farmers in Moga with company loans at favorable rates 46

8 and helped farmers to keep more life stock on land. Nestle worked with the local community to gradually build confidence in the milk trade without compromising religious customs. As a part of cause related marketing, Nestle is taking initiatives to create awareness about education by encouraging the communities around its factories to send their children to school. The employees of the company have developed a play Let Us Go to School for this purpose. Apart from encouraging the children to study, Nestle is also involved in the maintenance of some public parks, supporting some local schools, facilitating blood donation and awareness camps. Nestle create corporate web research group through OTG group and web freebies blog. Table 4.2 shows the societal marketing deeds of Nestle India. TABLE 4.2 Societal Marketing Deeds of Nestle India Ltd. S.No Societal Marketing Deeds No.of Programs 1 Cause related marketing 17 2 Web Blogs 18 3 Green marketing 10 4 Social Group Endorsements 4 Source: The above table reveals that Nestle India Ltd is involving in more number of web blog campaigns 4.4 Case of Proctor & Gamble India Ltd Procter & Gamble Co. (P&G) is an American company based in Cincinnati, Ohio that manufactures a wide range of consumer goods. In India Proctor & Gamble has two subsidiaries: P&G Hygiene and Health Care Ltd.,and P&G Home Products Ltd. P&G Hygiene and Health Care Limited is one of India's fastest growing Fast Moving Consumer Goods Companies in India. Proctor & Gamble is the second largest FMCG company in India after Hindustan Lever Limited. At P&G, Social 47

9 Responsibility stems from the Corporate PVP (Purpose, Values, Principles). Social Projects are in keeping with P&G s credo of Business with a Purpose. P&G has always demonstrated its commitment to the community not just through the quality of its products and services, but also through socially responsible initiatives for the community. The company believes in building the community in which consumer lives and operate by supporting its ongoing development. P&G India Ltd committed to social responsibility by providing products and services that improve consumer standards in terms of health hygiene and convenience. As a disguised form of cause related marketing, P&G has joined with India s premier child rights organization Child Relief & You (CRY) and Sony entertainment television in order to provide funds for the education of a number of unprivileged students by launching Shiksha. Irrespective of the sale of its brands from Shiksha, P&G has committed a minimum of Rs. 1 crore to CRY, which will be allocated by CRY to projects with a focus on education, spread across India; Delhi, Barrackpore (West Bengal), Ongole and Chilkaluripet (Andhra Pradesh), Bellary (Karnataka), Salem (Tamil Nadu), Bolangir (Orissa), and Osmanabad, Wardha, Navi Mumbai, Borivali (Maharashtra). In another form of social marketing, P&G opened seven Community Resource Centers to generate self-employment, education and micro-credit for the earthquake victims of Kutch and most recently P&G employees volunteered and donated a total of Rs. 32 Lac towards Tsunami Rehabilitation via the Prime Minister Relief fund. P&G India s contributions were recognized when in 1998 it received the Bombay Chamber of Commerce and Industry Civic award for Education, Health and Hygiene for its PEACE Program. Social responsibility initiatives clubbed with the green marketing deeds, P&G launched PEACE - a unique Environmental Education Program for children in 48

10 schools across Bombay and Thane representing a cross-section of economic backgrounds. The children were exposed to fascinating account of the Indian environmental scenario. P&G in partnership with Swayam Shikshan Prayog (SSP) opened four Community Resource Centers for the earthquake victims in the Chakasari, Paggivand, Hanjiya and Jodhpar vands (hamlets) of Rapar Taluka, Kutch District of Gujarat. The Community Centers provide basic education for children; training on building earthquake-resistant shelters and has supported the formation of 22 Women's Savings Groups which contribute towards an income-generating fund, for future entrepreneurial activity. The P&G-SSP project positively impacts 25 villages, 3750 families and 22,500 people and helped mobilize women s groups and communities in Gujarat for their long-term sustainable development. Credit fund will be provided as a revolving fund to self-help groups. Table 4.3 shows the societal marketing deeds of Procter and Gamble. TABLE 4.3 Societal Marketing Deeds of Procter and Gamble India Ltd. S.No Societal Marketing Deeds No.of Programs 1 Cause related marketing 13 2 Web Blogs 4 3 Green marketing 40 4 Social Group Endorsements 14 Source: The above table reveals that Procter and Gamble India Ltd is involving in more number of green marketing campaigns. 49

11 4.5 Case of Hindustan Unilever Ltd Hindustan Unilever Limited (HUL) is the India's largest fast moving consumer goods company, touching the lives of two out of three Indians. HUL s mission is to add vitality to life through its presence in over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. The company meets everyday needs for nutrition, hygiene, and personal care, with brands that help people feel good, look good and get more out of life. The company s strategy is to integrate its social, economic and environmental agenda with the company s brands, people and its operations. Shakti is a form of the social group endorsement initiative taken by HUL. It is HUL's rural initiative, which targets small villages with population of less than 2000 people or less. It seeks to empower underprivileged rural women by providing income-generating opportunities, health and hygiene education through the Shakti Vani programme, and creating access to relevant information through the ishakti community portal. Shakti is a pioneering effort in creating livelihoods for rural women, organised in Self-Help Groups (SHGs), and improving living standards in rural India. Shakti provides critically needed additional income to these women and their families, by equipping and training them to become an extended arm of the company's operation. Shakti Vani is a social communication programme. Women, trained in health and hygiene issues, address village communities through meetings at schools, village baithaks, SHG meetings and other social fora. In the environmental area the company has considered initiating rain water harvesting activities around 10 of its manufacturing units. Since 2002, the company has reduced water usage per tonne by more than 50% in its manufacturing operations. The energy consumption per unit of production since 2004 has also come down by 32%. The company aims to become water positive across all its operations by

12 HUL has also embraced Unilever s ambitious target of 25% reduction in CCL from energy in manufacturing operations per tonne of production by 2012, against a baseline of HUL has recently developed a new process of manufacturing soap based on Plough Share Mixer technology which eliminates the need for steam in soap making. The new technology cuts carbon emissions by 15,000 tons per year and HUL has been awarded carbon credits for this under the Clean Development Mechanism scheme operated by the United Nations Framework Convention on Climate Change. On the social front, the company will endeavour to enhance livelihoods of 75,000 women in a sustainable manner. On the economic front, the company s leading food brand, Kissan, is targeting to source agricultural raw materials from primary producers. The company would pass on the entire economic benefits of this backward integration back to the farmers. Under the Happy Homes initiative, HUL supports special education and rehabilitation of children with challenges. Asha Daan, a home in Mumbai for abandoned, challenged children, and the destitute has been set up on a 72,500-square feet plot belonging to HUL, in the heart of Mumbai city. HUL bears the capital and revenue expenses for maintenance, upkeep and security of the premises. The needs of the abandoned challenged children are also met through special classes of basic skills, physiotherapy and, if possible, corrective surgery. At any point of time, it takes care of over 300 infants, destitute men and women and HIV-positive patients. Over the years, HUL has opened schools for challenged children with a sharper objective of supporting families of such children, helping the children become self-reliant by learning appropriate skills to be productive members of the household. In association with an NGO, Vanrai, HUL's Silvassa manufacturing hub (in the Union Territory of Dadra & Nagar Haveli) too has embarked on a long-term project of water harvesting, which aims to dramatically 51

13 change water availability, taking it up to year-round availability. ishakti, the Internet-based rural information service, has been launched in Andhra Pradesh, in association with the Andhra Pradesh Government's Rajiv Internet Village Programme. ishakti has been developed to provide information and services to meet rural needs in medical health and hygiene, agriculture, animal husbandry, education, vocational training and employment and women's empowerment. Table 4.4 shows the societal marketing deeds of HUL. TABLE 4.4 Societal Marketing Deeds of HUL India Ltd. S.No Societal Marketing Deeds No.of Programs 1 Cause related marketing 76 2 Web Blogs 69 3 Green marketing 72 4 Social Group Endorsements 78 Source: The above table reveals that Hindustan Unilever India Ltd is involving in more number of social group endorsements campaigns. 52