Product and Brand Management

Cycle Agarbattis

Submitted by:Sunil Rao (36)

Pallavi Srivastava (55)Mansi Patil (130)Vinay Singh (150)

Akansha Raje (158)

History and Ownership

• Began as "Mysore Products and General Trading Company" in 1948.

• Founder: Sri. N.Ranga Rao• Owned by the Rs. 130 crore, Bangalore based N

Rangarao and sons.• NR Group has the strongest R&D setup in the entire

agarbatti industry.(Over 500 agarbatti fragrances) • Market leader in India and also exports to 60

different countries.

Brand Elements

• Name: Cycle Agarbatti• Logo: A Cycle which symbolizes Quality.• Tagline: “Bhagwaan Hai"• Graphics: Depiction of Gods in its packaging and print

ads.• Sounds: The brand also has few signature tunes to

make sure that the brand has its presence in the minds of consumers.

• Scents: The agarbattis produce an exhilarating fragrance that tantalizes the senses and moves the soul.

Product related Elements• Synonymous with religious prayers and ritual ceremonies. • Used during meditation, spiritual sessions and yoga practices. • Used in everyday life as air fresheners and in aromatherapy as mood

enhancer or stress relieving agent. • Different natural herbs, flowers, aromatic oils are used for making

these sticks. • Many herbal extracts and aromatic oils, powders are used to form the

paste. • Saffron incense sticks is mainly used in aromatherapy.• Lavender incense sticks are said to relieve stress and headaches when

burnt in the work place.• Jasmine incense sticks proves valuable remedy for depression, stress

and fatigue.

Brand portfolio

Profile of Target Customer

• Lower middle class, Middle class, Upper middle class, Rich.

• They have all range of customers. • From auto rickshaw wala to shopowners every

one uses it. • It is used during inauguration of event or

festival etc.

Communications• Print Media: “Bhagwaan hai” which has come in regional

languages like Malayalam, Gujrati, Kannad(Devaru iddarre), Marathi to cater to the varied target customers

• Radio: There are radio ads of the brand in different regional languages

• TV Commercials: Phir bhi dil hai Hindustani and Bhagwaan hai are few popular ads that are hit on TV

• Signature Tunes: The brand also has few signature tunes to make sure that the brand has its presence in the minds of consumers

• During the ICC Cricket World Cup they have launched the ‘Pray for India’ campaign which was part of all their communications during that period.

Stick Maker Agarbatti Roller

R/M Suppliers

Forest Dep/Bamboo Supply

Sorting of Agarbatti

Retailers

Packaging Section

Stick Sorter

Customers

Perfume Industry

Agarbatti PerfumerPackaging

Transporter

DISTRIBUTION

Pricing

BRAND PRICE

Cycle Agarbatti

120 sticks. MRP : Rs 50

Cycle Lia Agarbatti

70 sticksMRP : Rs 30

Pricing

BRAND PRICE

Cycle Hexa Agarbatti

MRP : Rs 10

Cycle 3 in 1 Agarbatti

30 gmsMRP : Rs 10

Positioning

• ‘Cycle’ is positioned as a premium brand and differentiated from others in terms of packaging, advertisement campaigns and quality.

• Cycle agarbattis thrived in the market by continuous innovation in their packaging and fragrance.

• Cycle established their presence in the less attractive market as a brand by some effective campaigns emphasizing on quality and fragrance.

POP’s and POD’sPoint of Similarity:• Pricing- Ranges from Rs.10 – Rs 60 packets for agarbattis• 3-in-1 and 5-in-1 packets• Promotes the religious cause• Availability in kiranas, pan shops, supermarkets etc

Point of Difference:• Good Quality• Better Packaging• Better offers for customers during festivals• Give importance to promotions• Variety in fragrance• Pooja Kits are also their USP

Competitor Analysis

• ITC has launched Mangaldeep Agarbattis across a wide range of fragrances like Rose,Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and Mogra.

• Appropriately priced to appeal to a cross-section of consumers at various price segments. These agarbattis are available in innovative 'Fragrance-Locked' packaging. 'Fragrance locking' is a unique concept of packaging which retains the fragrance for a longer period and helps in "Completing the Purity of Prayer“.

• First in the country to receive the ISO9000-2001certification for agarbatti making

Competitor Analysis Continued…

• Exported to United States of America, United Arab Emirates, Bahrain, Nepal, Singapore, Malaysia, Oman and South Africa.

• Supporting an 'Agarbatti Community Participation Programme' run by the Vyakti Vikas Kendra, a non-profit organisation founded by the renowned spiritual guru Sri Sri Ravishankar and located near Bengaluru.

• Over 100 village women are gaining from the training that this organisation imparts in rolling agarbattis.

• Extending similar support to other NGOs in states like Bihar, Tripura and Tamil Nadu.

Sources of Brand Equity & Brand Mantra

Brand Awareness : • High due to advertisements like ‘Bhagwaan Hai’ ; signature tunes and social

activities performed by the brand• Launched campaigns like ‘Pray for India’ • Campaign during Durga Puja in West Bengal• Free match box with the pack• Always ‘top-of-the-mind’ recall

Brand Image :• Pleasing fragrance• Readily available• Long lasting

Brand Mantra : Innovation, variety and surprise for the customer

Performance:

• Creativity : Good Fragrance • 3-in-1 pack• Quality • ‘Cycle’ – across all languages• Distribution: Easy availability

Imagery:

• Innovative• Product Differentiation :

Variety• Socially responsible• Excellent packaging

Judgements:

• Value for money• Durability

Feelings:

• Warmth• Self-respect

Salience : Brand Awareness

• High Breadth : Pooja, Religious festivals, Gift to loved ones, Room freshner, Ayurveda, Spirituality• High Depth : Top of the mind recall due to easy availability, quality

Resonance

• Loyal customers• Repeat purchase

Customer Based Brand Equity Pyramid

Major Issues

• Agarbatti is a commodity• Input costs are rising

Brand Strategies

SWOT ANALYSIS

STRENGTHS •Art of perfuming is well accustomed.•Large labour base•Exposure to Export markets•No power requirement•Aids to poverty elevating program •Has a huge potential to generate employment•Recognized under the handicraft sector•Supports many allied activity of handicraft (Bamboo splitting, Paper tube making etc.)•Support of Government departments , NGOs

WEAKNESSES •Decrease in raw material availability•Lack of mutual trust•Customer awareness is very low amongst low-end producers.•Finance is not liberal since industry involves large working capital.•Lack of innovations and experimenting skills to explore the new users & uses•No progress in R&D•Laws, acts etc.•Poor living condition at bottom of the network

OPPORTUNITIES•Large export market potential.•Scope for innovations and R&D•Domestic market expanding•Machine milled, hand rolled batties are having a competitive edge over machine made agarbattis•Free trade regime can provide better raw materials for better price

THREATS•Global competition.•Unethical practices at local level.•Forest based raw material supply becoming scarce•Mechanization

Mc Kinsey’s 7S ModelMckinsey’s 7S Model The 7s Framework of McKinsey is a management model that describes 7 factors to organize a company in a holistic and effective way

Application of 7s Model:

1. Structure:

•The organization chart and accompanying baggage that show who reports to whom and how tasks are both divided and integrated.

•Since N.Ranga Rao & Sons is a private ltd company. The structure of the organization is democratic. Major decision however is taken is at top-level management of the company.

2. System:

•Quality always has been an integral part of the organization in all processes during product realization.

•Quality checks at vendor premises daily, is our norm for out-sourced processes.

•AWARENESS on the importance of quality and introduction of FORMAL methods for quality control and improvement has been an evolutionary development over 6 decades

Mc Kinsey’s 7S Model

3. Style:

Style is one which top managers can use to bring about organization change.

The reasons to support this are as follows:

1. Whenever important decision are to be made, the whole staff is allowed to participative in the decision making where by suggestions are sought and if found appropriate are accepted and implemented.

2. In N.Ranga Rao & Sons instead of „Boss-Subordinate‟ relationship among the employees of the organization, superior acts as a guide and facilitator for his subordinates.

3. The top management always encourages changes in the organization provided they happen to be always ready to cope with different situation.

Mc Kinsey’s 7S Model

4. Staff:

•Employees are the functional unit of any organization•The company contributes to the prosperity of the society as whole by providing equal opportunities to all•The company provides training to get gainful, high performance employees. 1500 plus employees are working under N.R.Group in all over India.

5. Skill:

•The qualified personnel with required skills and competency are recruited and selected for the required designation.

For example: for recruiting and selecting the manpower required by the Marketing department the criteria would be MBA (Marketing) and who have the capabilities and competencies to handle the functioning of work smoothly.

Mc Kinsey’s 7S Model

6. Strategy: The strategies being adopted by the company:

"FRAGRANCE WORLD”, THE EXCLUSIVE RETAIL SHOWROOM: Fragrance World‟, the exclusive retail showroom of the Mysore based NR Group located on Dhanwantri road in Mysore city.

•Advertisement in a traditional and devotional way like Bhagawan hai, Devaru eddare

• Sponsoring Third umpire ship in International cricket matches

• Building bus stands in the Mysore city with colourful background of Cycle pure agarbattis posters

Mc Kinsey’s 7S Model

7. Shared values: The common feeling among the people in the N.Ranga Rao & Sons is that they are meeting the demands of the customers and fulfilling the expectations in the form of productions and its variability. The employee also have belief that they are giving at the best possible price to milk they procure from farmers. Value of NR Group:

• Honesty

• Discipline

• Transparency

• Cleanliness

• Total quality

• Self-reliance

• Co-operative free politics

• Respecting others opinions, emotions, thoughts, and feelings.

Mc Kinsey’s 7S Model

Suggested 4Ps of Marketing Strategy

ProductThe company should come out with the following products:

Agarbatti’s namely:a)Super  b)Medium c)Regular 

In four perfumes, namely:a)Lily b)Rosec)Jasmined)Mograe)Without perfume

Suggested 4Ps of Marketing Strategy

PriceThe company should come out with innovative pricing strategy.

In five types of prices:a) Mini Pack (Kabhi Kabhi) – Rs.2b) Regular Pack (Rozana) – Rs.10c) Thick (Bada) – Rs. 25d) (Extra Bada) – Rs.40e) Jumbo – Rs.90

Place

Urban Areas – Super Market, Retail Outlets, Kirana Shops, Pan Shops Rural Areas – Haats, Kiranawala, Pan Shops, Door to Door selling

Promotion

Following promotional strategies should be followed:a)Banners b) Distribution of free mini pack with some of the regular household commodity(Bundling)c)Pamphletsd)Painting on the walls or shutter of the kirana & general stores

Social marketing – Use 50paisa to 1 Rupee from sale of each packet for social causes

Suggested 4Ps of Marketing Strategy

Recommendations

1) Advertising can be done in all mediums like TV, Radio, and Magazines etc. On the whole effective advertising in the media is necessary. The advertisement should develop a purchase intension in the minds of the viewers.

2) To make the buyers more loyal towards the brand, give more discounts and offers have to be provided

Example: If u can give a coupon inside the pack of Agarbatti, if ten coupons are collected one pack can be given free or any small gifts can be given. Such offers may develop a brand loyalty towards Cycle Pure.

3) Product proliferation: introduce the products with lots of variety, this will give the buyer more choice Example: Lia, Bansuri, Rhythm etc.

4) Offer sample packs to all outlets so that the product gains awareness.

Recommendations

5) Sample packs can also be given with some local magazines which are being sold.

6) The sticks must be more thick and The chemicals used in incense stick will not attach to the consumer hands

7) Many competitors are providing 1Rs and 2Rs packets with 4 or 6 sticks for a day use therefore company can grab that opportunity.

8) Company should give more important on quality because some of the incense sticks will not burn fully and in the middle itself it will off so company has improve on quality.

9) Increase the quantity of agarbatti packets of 10Rs and 12Rs.