FMCG Market Analysis

FMCG Market Analysis EXECUTIVE SUMMARY The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer upgrading in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry. Rapid urbanization, increased literacy and rising per capita income, have all caused rapid growth and change in demand patterns, leading to an explosion of new opportunities. Around 45 per cent of the population in India is below 20 years of age and the young population is set to rise further. Aspiration levels in this age group have been fuelled by greater media exposure, unleashing a latent  demand with more money and a new mindset. The importance of consumer sales promotion in the marketing mix of the fast moving consumer goods (FMCG) category throughout the world has increased. Companies spend considerable time in planning such activities. However, in order to enhance the effectiveness of these activities, manufacturers should understand consumer and retailer interpretations of their promotional activities so that appropriate differentiation can be used. Retailers stated that role of word of mouth and television advertising was very important in providing information inputs to the consumers regarding sales promotion activities. This perception of retailers was supported by the consumer unaided recall of sales promotion schemes which were widely advertised. The research concludes with the discussion of the results, managerial implications limitation of the study and future research directions. CHAPTER 1 INTRODUCTION I. ABOUT THE DISSERTATION INTRODUCTION Advertisements convey brand differentiation and this may be important in several categories, which consist of several brands. In FMCG products like tea, coffee and detergents, â€Å"differentiation awareness† can be created by television advertising, but in certain categories there may be a need to demonstrate the effectiveness of brands. Differentiation with which consumers cannot â€Å"connect† may have a negative implication and if a brand â€Å"connects† consumers with its differentiation, it is likely to also differentiate itself in terms of getting identified with the consumer. A detergent or a washing machine, which claims â€Å"low water consumption† has to demonstrate this claim at a retail outlet especially given the fact that the quality of water varies across areas even in a specific geographical region. It is also essential that a good â€Å"differentiation proposition† result in a positive word-of-mouth. In a certain situation, the company may have two offerings in a product-line and there is a need to differentiate them clearly depending on the target segments involved. This is a complex situation where differentiation decides the growth of the brand and the perceived difference between the offerings. An added layer to the complexity is the same brand name being used for the offerings. Fairness cream is a category in which the benefit is the fairness of the complexion. A brand like Fair and Lovely built over the years still has a strong association with the category but under tremendous pressure from competitive brands and the most important criteria which these brands is the herbal touch associated with them. Herbal ingredients are becoming popular with consumers in several categories and personal care in India has a strong tradition of herbal care. Fair and Lovely had to launch its herbal variant (it used the same brand probably because of the brand equity built up over the years) . The interesting fact is the differentiation being conveyed by advertising. The original version uses an aspiration route in which the brands ultimate benefit is success through confidence. Estimates based on Chinas current per capita Consumption, the Indian FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. The dominance of Indian markets by unbranded products, change in eating habits and the increased affordability of the growing Indian population presents an opportunity to makers of branded products, who can convert  consumers to branded products. Penetration level in most product categories like jams, toothpaste, skin care, hair wash etc in India is low. The contrast is particularly striking between the rural and urban segments the average consumption by rural households is much lower than their urban counterparts. Low penetration indicates the existence of unsaturated markets, which are likely to expand as the income levels rise. This provides an excellent opportunity for the industry players in the form of a vastly untapped market. Moreover, per capita consumption in most of the FMCG categories (including the high penetration categories) in India is low as compared to both the developed markets and other emerging economies. A rise in per capita consumption, with improvement in incomes and affordability and change in tastes and preferences, is further expected to boost FMCG demand. Growth is also likely to come from consumer upgrading, especially in the matured product categories. CHAPTER 2 I. LITERATURE REVIEW Impact of Effective Advertisement on Consumer Attitude Dr. F.R. Alexander Pravin Durai By going through this article I have come across some points which you should look upon. If you want to read the article it is present in the appendix. Following are some points:- Advertising is the only direct method which helps to reach masses of potential buyers. Advertising, being dynamic, changes with changing methods of distribution and consumption. In the present era of information explosion and media influence, these advertisements playa major role in changing the settled perception or thinking, which is otherwise called attitude, of the consumer and · also the consumption pattern of the society in general. Thus, the impact leads to cultural and social changes to a great extent. Why is there a need of advertising? Advertising is a way of communicating information to the consumer which enables him or her to compare and choose from the products and services available. Advertising is the most economical means by which a manufacturer or an Institutional body can communicate to an audience whether to sell a product or promote a cause of social welfare. Essentials of Effective Advertisement-the writer thinks that there are 4 important things for an advertisement to be effective. They are importance of claim, believable, uniqueness and repetition. The advertiser must constantly assess the situation to choose the right environment and ideal time for an advertisement to be launched. Some of the situations are as follows:- When there is a favorable primary demand of particular product. When there is a distinctive product differentiation from other competitive brands. When mass market is penetrated. In order to ensure that the advertisements reach the target consumers in a most effective way and gets right response from them, it has to be ensuring that such advertisements are presented in the right way. The following steps on the part of the consumer may ensure that the advertisements are on the right track. Getting attracted towards the advertisements. Listening and observing the contents of the advertisements in full. Continuous watching of the same over a period. Comparing the advertisements of similar products. Making a trial purchase as follow up activity. Assessing the level of utility of the product individually. Ascertaining the level of utility derived with other similar consumers. In the article Dr. Alexander Told about a model which exemplifies the attitude or response of a consumer to an advertisement. Techniques of advertising for Fast Moving Consumer Goods Dr. Archi Mathur- Assistant lecturer, Department of Management Studies, National Law University, Jodhpur Dr. HK Bedi- Professor, Dean, Department of Management Studies, National Law University, Jodhpur This article shows how an advertiser can use different techniques of advertisements to show FMCG products. The techniques are as follows: Value added ads- In addition to providing information about the product; Value-added advertising transforms a product into something more appealing to consumers than the physical object produced in the factory. Therefore, it is a missing link between brand attributes and the customer perception, between product features and need fulfillment, .between benefits and values. Comparative ads- the advertiser compares the 2 brands of the same product category. The ad can be copied as the Pepsi and sprite example in the case. They have used the same story but both have them had a different approach. Informative ads- these ads are used to provide information to the consumer about different products and services. Health and Hygiene ads- these ads show that the product is taking care of the consumers health. It is emphasizing of the physical attribute of the product. What does the product do? How does it help you? The ad tells you all. These are some of the techniques. Lifestyle ads- Another way to. nave an impact on the consumers mind is portraying the life-style of a successful person. Humorous ads- Humor in the advertisement is normally kept in order to create a light, jovial and likely kind of an atmosphere Demographic ads- these ads are meant for different segments based on age, sex etc. Farex Cereal Food for infants is an advertisement targeted directly towards the infants, as it comprises a healthy food for them. It is also targeted indirectly towards the mother. Packaging ads- Advertisement is trying to lure the customers to buy their products on the basis of the way they are brought in front of the consumers eyes ie. Packaging. Dabur has brought in different flavors in the market of fruit juice. E.g. Mango, Pineapple, Orange, Mixed Fruit Jete. All these are in different packages, i.e. 50 ml, 1000 ml, etc. They claim that unlike other juices, which have preservatives in them, these products are without preservatives. Hence, the punch line is Real Fruit Juice. Price ads- Marketers also lure the customers by showing in an advertisement that a product is available at a lesser price without any compromise on the standard. Cadbury India advertised the 5-Star chocolate by offering 30% more chocolate in its 5-Star bar for the same price. Celebrity ads- Celebrities are mainly used in the advertisement either to lure the rural people in buying a particular product or in forcing the young generation to buy the products. This is also called endorsement advertising.,{t is also used in portraying that a particular product is best inqtJality because a person who is also very well known in his/her field endorses it. The impact of these stars in advertisements enables the company to increase its sale. CHAPTER 3 I. RESEARCH METHODOLOGY II. RESEARCH OBJECTIVE The main objectives of the study are: 1. To assess current consumer sales promotion schemes in the market 2. To assess how consumers differentiate the products based on advertisements 3. To get an insight into retailers views regarding the schemes being offered in toilet soap category, and consumer perceptions 4. To study consumer perceptions regarding various schemes in this category and responses toward them. 5. To study the various methods of differentiation. 6. To analyze the methodology adopted by companies to target end consumers. 7. To address basic business questions like: Do companies have the right product/service to offer? How companies reach their customers? How the buying power can be created? To prepare new business strategies RESEARCH METHODOLOGY Methodology: Technique used for the survey is questionnaires, focus group discussions and interviews. In order to address the above questions an exploratory study was conducted. The idea was to probe and get deeper insight into sales promotion scenario in toilet soap market and to tap perceptions of retailers and consumers. In order to address above mentioned objectives (i) study of secondary sources was carried out, 10(ii) in-depth interview of six retailers was undertaken and 11(iii) structured questionnaire was designed to seek consumer responses. Convenience sampling was used for both retailers as well as consumer studies. Six retailers ranging from small kirana store to supermarket were approached. All the retailers were located in the Noida. The respondents for consumer study were postgraduate students in the age group of 19-24 belonging to middle and upper middle and upper class. The total respondents were 30 in number. They were residing in hostel or as PG hence sole decision-makers for t his category. Also this age-group being more experimental and likely to be more deal prone, so their perceptions, preferences would give some insights to companies planning sales promotions targeted at them. Scope and Limitations: The geographical scope of the study was restricted to the NOIDA city due to time and resource constraints. The study being exploratory in nature, the sample size was restricted to 30 consumers (student group) and 6 retailers. Focus being mainly on in-depth probing, the generalizations drawn are only indicative and not conclusive. CHAPTER 3 I. FMCG AN INTRODUCTION II. INDIAN CONTEXT III. MARKET OPPORTUNITIES IV. EVOLUTION AND CHARECTERSTICS FMCG -FAST MOVING CONSUMER GOODS BRIEF DECRIPTION OF INDIA FMCG MARKET MARKET OPPORTUNITIES IN FMCG: According to Estimates based on Chinas current per capita Consumption, the Indian FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. The dominance of Indian markets by unbranded products, change in eating habits and the increased affordability of the growing Indian population presents an opportunity to makers of branded products, who can convert consumers to branded products. Penetration level in most product categories like jams, toothpaste, skin care, hair wash etc in India is low. The contrast is particularly striking between the rural and urban segments the average consumption by rural households is much lower than their urban counterparts. Low penetration indicates the existence of unsaturated markets, which are likely to expand as the income levels rise. This provides an excellent opportunity for the industry players in the form of a vastly untapped market. Moreover, per capita consumption in most of the FMCG categories (including the high penetration categories) in India is low as compared to both the developed markets and other emerging economies. A rise in per capita consumption, with improvement in incomes and affordability and change in tastes and preferences, is further expected to boost FMCG demand. Growth is also likely to come from consumer upgrading, especially in the matured product categories EVOLUTION:  § 1950s-80s Low Investment in the sector Low purchasing power Govts emphasis on small scale sector HLL and other companys urbane focus  § Post liberalization Entry of MNCs Focus shifted to getting to rural consumer first Others, like Nestle, remained with the urban population Latest fad to hit the market is the ‘sachet bug.  § Mushrooming of regional brands Nirma enters and changes the focus to ‘Value for Money in the 70s Post liberalization, Jyothi Laboratories, ‘Ghari Detergent and ‘Anchor toothpaste giving the nation-wide brands a run for their money. CHARECTERSTICS: FORECAST 2010:  § Rural and semi-urban  § 128 million population thrice the urban  § Market size growth from 48k to 100k Crores (Growth of 50% at 10%CAGR)  § Increase penetration from the current less than 1%  § Problems in the rural sector * Low per capita disposable incomes * Large number of daily wage earners * Acute dependence on vagaries of monsoon * Seasonal consumption * Poor infrastructure roads and power supply  § Urban  § Market 16.5k to 35k Crores (Growth of 100% at 20%CAGR)  § Intense competition severe pressure on margins Focus on newer products, such as fruit juices Source: Assocham Report ‘Future Prospects of FMCG CHAPTER 5 I. UNDERSTANDING DIFFRENTIATION II. TYPES OF DIFFRENTIATION III. THE INDIAN CONTEXT I. II. UNDERSTANDING DIFFERENTIATION: Differentiation is the process of adding a set of meaningful and valued differences that distinguish a companys offering from those of its competitors. Differentiation is strongest when it satisfies all of the following criteria: 1. Important: the difference delivers a highly valued benefit to a sufficient number of buyers 2. Distinctive: the difference can be delivered in a clear way 3. Superior: the difference is a better way of obtaining a benefit 4. Pre-emptive: the difference cannot be easily copied 5. Affordable: the buyer can afford to pay for the difference 6. Profitable: the company will earn a return by maintaining the difference BRAND loyalty in fast moving consumer goods categories is a topical issue, with several brands resorting to price cuts across categories. More importantly, price cuts or sales promotion by themselves do not seem to have done much for brands in terms of sustaining brand loyalty. They may attract consumers in the short run: consumers may stock the brands and consumers new to the brand may try it. But over a period of time, a brands value may get diluted in consumers psyche, and will eventually lose a strong base of consumers. The following are some aspects of marketing mix elements and consumer behavior which could contribute to brand loyalty. Product differentiation If the products are differentiated in their characteristics and this difference is perceivable, there are chances of brand loyalty being formed based on satisfaction with greater performance or fit of product with needs. In this case, loyalty is driven by functional or symbolic benefits. Functional benefits would be specific tangible features of the product whereas symbolic benefits would be intangibles such as brand personality and `hedonistic value of purchase. Price differentiation If the price differentiation in the market is perceivable, price-led loyalty might exist in the market. Price-led loyalty is practised by supermarkets, airline companies and FMCG brands, which come out with frequent sales promotions based on freebies. Alternatively, price might be taken as an indicator of brand quality, and the customer might go in for higher priced options. Price-led loyalty has to be carefully considered with other marketing mix elements and the consumer should never perceive dilution, especially in low-priced bands. Hence, lower prices should create a sense of value through the product offerings as well as through communication. Branding activity If the category is organized and there is branding activity, there will be greater loyalty than there would have been if the category were unorganized. Branding activities can differentiate between brands on name, symbol, images and associations. Branding activity in this context refers to creating strong associations which will influence the consumers not only with regard to functional attributes but also with symbolism. Hamam soaps portrayal of its pure ingredients with the child and mother imagery is a good example of one of these dimensions. Branding activities in a broad sense could range from advertising to sales promotion and public relations involving several aspects. III. The Indian context The following were the observations from the literature survey and the examples chosen from the Indian context. The factors indicate that there will be a large segment of consumers for whom price-led loyalty will dominate. Hence there will be strong behavioural loyalty in the segment and only weak attitudinal loyalty. There is thus spurious loyalty in this sector. There is a moderate level of symbolic and functional differentiation which has been exploited by strong brands to build a loyal following. Examples of this include brands such as Dove, Ponds Dreamflower talcum powder, Gold Flake, Wills Navy Cut, Amul and Cadbury. These brands have probably built strong attitudinal loyalty through their brand personality and other brand building efforts. In the FMCG sector, brand habit is high whereas attitudinal loyalty is low. As creating attitudinal loyalty based on functional differentiation is difficult, symbolic differentiation is the key. Building strong brand personalities and associated symbolic benefits is important for crafting customer loyalty. The factors discussed cannot be treated in isolation: they are to provide a synergy to result in brand loyalty. The combination of these factors and the timing of the combination is the topical challenge which marketers face in an environment where loyalty is slowly eroding. Local challengers Some of the most successful FMCG brands in 2002 came, not from the stables of a Hindustan Lever and a Colgate, but from obscure regional players such as Kaleesuwari Refineries, Parakh Foods, Anchor Switchboards and Kanpur Detergents. Over the past couple of years, brands such as Gold Winner and Gemini in refined oils, Anchor White in toothpastes and Ghari in detergents have managed to sustain double digit growth rates, even as the market leaders have struggled to hold on to single digit growth rates for their brands. Yes, the comparison is unfair, as the local brands had a minuscule base to start with. But these brands have demonstrated it is not impossible for a new challenger to break into the traditional bastion of one or two large FMCG players. Traditionally, large FMCG categories in India have been dominated by just one or two players, who rule the roost by dint of their sheer financial muscle and distribution reach. But, of late, successful regional brands have been finding chinks in their armour. And how! Aggressive pricing In the edible oils market, as national players were forced to hike their selling prices in response to rising commodity prices, both Gemini and Gold Winner have used aggressive pricing to woo consumers away from the national brands. Packed tea too, has seen similar trends. The limited differentiation in grocery and the flexibility offered by a restricted area of operations have stood these companies in good stead. Anchor White, among the few debutants in the toothpaste market to garner a significant share, first wooed the retail trade with high distribution margins, and then used rock-bottom prices to lure consumers into trying the product. Though none of these companies can match the market leaders in adspend, they have used focused regional and local advertising to draw consumers attention to their brands. The mushrooming of local and regional media has undoubtedly helped the local players milk the most from their ad budgets. Banking on `power brands While the local brands have been adding to their brand portfolios, the market leaders have largely stayed off new product launches. In keeping with its power brand strategy, Hindustan Levers marketing strategies in 2002 revolved around rejigging and relaunching established brands such as Lifebuoy, Rin, Surf and Vim. The company phased out brands such as Sunlight in detergents, and Jai in toilet soaps, so as to focus better on its 30 power brands. The strategy appears to have worked, as brands such as Lifebuoy and Rin have moved into a higher growth trajectory after the relaunch. In fact, HLLs power brand strategy has found a few followers in the FMCG market, with companies such as Godrej Consumer also announcing plans to focus on a clutch of key brands. Streamlining and spend While the power brand strategy has helped the leading players put their marketing prowess behind their most important brands, it has not really helped them save on ad spend. For most FMCG companies, advertising and promotion spends in 2002 grew faster than their sales. In high penetration categories such as soaps, detergents and toothpastes, marketing efforts of the players revolved around persuading existing consumers to use more of the product or to upgrade to a higher-priced brand. The slew of 100 gm free for every 150 gm offers in toothpastes and the series of promos on the 2 kg packs of premium detergents were both intended to induce existing consumers of a product to pep up their usage of the brand. Companies operating in relatively low-penetration categories such as chocolates, shampoos and skin creams tailored their marketing strategies to bringing in new users, through scaled-down versions of their brands in affordable pack sizes. The low-priced Chocostik, a liquid chocolate in a small-sized pack, launched by Nestle India, has helped pep up the companys topline and is now a large contributor to the companys revenues. Nestle India is now trying out a similar small-sized Rs 5 pack for Maggi noodles. Shampoos have been among the few FMCG categories to register a positive growth rate in 2002, and growth in this category has been driven mainly by sachet packs and by scaled-down 50 ml bottles priced at less than Rs 10. Overall, the FMCG slowdown of the past three years has served a useful purpose. At one level, it has made sure that the dominant players in the market no longer enjoy unlimited pricing power, as they have in the past. There now appears to be a greater effort on the part of the players to hold selling prices and look at their own operations to save on cost. At another level, the emergence of the regional challengers has made sure that consumers of FMCG products have a few more choices in their purchases of essentials. Is selling soap the same as selling a TV? It isnt. The difference is how the particular product is sold and more importantly, how is it distributed. India is a unique market, where the manufacturers who deliver products at the doorstep, which is the ideal way to deliver anything, spoil our consumers. We have an extremely evolved distribution mechanism for most products. Different products are sent to the consumer differently. Depending on the number, the price of the product and the complexity of the selling process, they may vary from direct selling to selling through a channel that may have as many as four levels between the manufacturer and the consumer. A look at a few of them will show what it means to be a sales person of that product. Most FMCG (fast moving consumer goods) products are not hard-sold to the end consumers. Sales are built up largely by pull a technique using advertising and consumer promotion. The sell-in happens to the trade i.e. to various members of the distribution channel the CarryingForwarding/Super-stockist, the distributor, the wholesaler and most importantly the retailer, who is the interface with the end-consumer. This chain forms the most important link in getting the product economically to the consumers doorstep. A large MNC in the FMCG industry may be covering as many as 1 million outlets across the country with the help of thousands of distributors. Even a mid-sized company covers at the least 1 lakh outlets. Factoring in the vagaries of operating in more than 25 different states, each with its own sales tax complexities, different consumer needs, differences in the distribution structure, not forgetting differing octroi structures within a state, distribution is extremely complex in India. If the sell-in does not happen to this channel for whatever reason or is sub- optimal, a product is likely to fail. CHAPTER 3 I. UNDERSTANDING ADVERTISEMENT II. UNDERSTANDING SALES- PROMOTION III. CREATING DIFFRENTIATION THROUGH ADVERTISEMENT IV. PROBLEMS FACED BY MARKETERS I. UNDERSTANDING ADVERTISEMENTS Whether it is a serial in a regional satellite channel or a One Day International cricket match, there is a non-stop stream of advertisements, which clutter the commercial break. Well-established brands attempt to sustain brand recall while new ones try appealing to prospective consumers to get into their `consideration set. There are ads for children, housewives and youth. With advertising expenditure in the order of Rs. 8000 Crores per annum in the recent times and the proliferation of brands across categories, there is a strong need to consider the effectiveness of these advertisements. The idea is not to cease advertising but to consider how considering decisions would have to be considered with non-advertising alternatives. These non-advertising alternatives may also enable a brand to create and sustain consistent associations, which may be desirable in terms of long-term implications. A contemporary approach that creates a synergy between various aspects of a promotional mix (a dvertising included) provides a refreshing approach towards marketing communications. There may be several objectives of advertising and a promotional mix could be used in an innovative manner to address each of these objectives depending on the product category and target segment. Creating-brand-awareness When a new brand enters a category or creates a â€Å"new to the market† offering, it needs to create brand awareness. This would depend on whether the product is a consumable or a durable. The involvement level in a speci FMCG Market Analysis FMCG Market Analysis EXECUTIVE SUMMARY The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer upgrading in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry. Rapid urbanization, increased literacy and rising per capita income, have all caused rapid growth and change in demand patterns, leading to an explosion of new opportunities. Around 45 per cent of the population in India is below 20 years of age and the young population is set to rise further. Aspiration levels in this age group have been fuelled by greater media exposure, unleashing a latent  demand with more money and a new mindset. The importance of consumer sales promotion in the marketing mix of the fast moving consumer goods (FMCG) category throughout the world has increased. Companies spend considerable time in planning such activities. However, in order to enhance the effectiveness of these activities, manufacturers should understand consumer and retailer interpretations of their promotional activities so that appropriate differentiation can be used. Retailers stated that role of word of mouth and television advertising was very important in providing information inputs to the consumers regarding sales promotion activities. This perception of retailers was supported by the consumer unaided recall of sales promotion schemes which were widely advertised. The research concludes with the discussion of the results, managerial implications limitation of the study and future research directions. CHAPTER 1 INTRODUCTION I. ABOUT THE DISSERTATION INTRODUCTION Advertisements convey brand differentiation and this may be important in several categories, which consist of several brands. In FMCG products like tea, coffee and detergents, â€Å"differentiation awareness† can be created by television advertising, but in certain categories there may be a need to demonstrate the effectiveness of brands. Differentiation with which consumers cannot â€Å"connect† may have a negative implication and if a brand â€Å"connects† consumers with its differentiation, it is likely to also differentiate itself in terms of getting identified with the consumer. A detergent or a washing machine, which claims â€Å"low water consumption† has to demonstrate this claim at a retail outlet especially given the fact that the quality of water varies across areas even in a specific geographical region. It is also essential that a good â€Å"differentiation proposition† result in a positive word-of-mouth. In a certain situation, the company may have two offerings in a product-line and there is a need to differentiate them clearly depending on the target segments involved. This is a complex situation where differentiation decides the growth of the brand and the perceived difference between the offerings. An added layer to the complexity is the same brand name being used for the offerings. Fairness cream is a category in which the benefit is the fairness of the complexion. A brand like Fair and Lovely built over the years still has a strong association with the category but under tremendous pressure from competitive brands and the most important criteria which these brands is the herbal touch associated with them. Herbal ingredients are becoming popular with consumers in several categories and personal care in India has a strong tradition of herbal care. Fair and Lovely had to launch its herbal variant (it used the same brand probably because of the brand equity built up over the years) . The interesting fact is the differentiation being conveyed by advertising. The original version uses an aspiration route in which the brands ultimate benefit is success through confidence. Estimates based on Chinas current per capita Consumption, the Indian FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. The dominance of Indian markets by unbranded products, change in eating habits and the increased affordability of the growing Indian population presents an opportunity to makers of branded products, who can convert  consumers to branded products. Penetration level in most product categories like jams, toothpaste, skin care, hair wash etc in India is low. The contrast is particularly striking between the rural and urban segments the average consumption by rural households is much lower than their urban counterparts. Low penetration indicates the existence of unsaturated markets, which are likely to expand as the income levels rise. This provides an excellent opportunity for the industry players in the form of a vastly untapped market. Moreover, per capita consumption in most of the FMCG categories (including the high penetration categories) in India is low as compared to both the developed markets and other emerging economies. A rise in per capita consumption, with improvement in incomes and affordability and change in tastes and preferences, is further expected to boost FMCG demand. Growth is also likely to come from consumer upgrading, especially in the matured product categories. CHAPTER 2 I. LITERATURE REVIEW Impact of Effective Advertisement on Consumer Attitude Dr. F.R. Alexander Pravin Durai By going through this article I have come across some points which you should look upon. If you want to read the article it is present in the appendix. Following are some points:- Advertising is the only direct method which helps to reach masses of potential buyers. Advertising, being dynamic, changes with changing methods of distribution and consumption. In the present era of information explosion and media influence, these advertisements playa major role in changing the settled perception or thinking, which is otherwise called attitude, of the consumer and · also the consumption pattern of the society in general. Thus, the impact leads to cultural and social changes to a great extent. Why is there a need of advertising? Advertising is a way of communicating information to the consumer which enables him or her to compare and choose from the products and services available. Advertising is the most economical means by which a manufacturer or an Institutional body can communicate to an audience whether to sell a product or promote a cause of social welfare. Essentials of Effective Advertisement-the writer thinks that there are 4 important things for an advertisement to be effective. They are importance of claim, believable, uniqueness and repetition. The advertiser must constantly assess the situation to choose the right environment and ideal time for an advertisement to be launched. Some of the situations are as follows:- When there is a favorable primary demand of particular product. When there is a distinctive product differentiation from other competitive brands. When mass market is penetrated. In order to ensure that the advertisements reach the target consumers in a most effective way and gets right response from them, it has to be ensuring that such advertisements are presented in the right way. The following steps on the part of the consumer may ensure that the advertisements are on the right track. Getting attracted towards the advertisements. Listening and observing the contents of the advertisements in full. Continuous watching of the same over a period. Comparing the advertisements of similar products. Making a trial purchase as follow up activity. Assessing the level of utility of the product individually. Ascertaining the level of utility derived with other similar consumers. In the article Dr. Alexander Told about a model which exemplifies the attitude or response of a consumer to an advertisement. Techniques of advertising for Fast Moving Consumer Goods Dr. Archi Mathur- Assistant lecturer, Department of Management Studies, National Law University, Jodhpur Dr. HK Bedi- Professor, Dean, Department of Management Studies, National Law University, Jodhpur This article shows how an advertiser can use different techniques of advertisements to show FMCG products. The techniques are as follows: Value added ads- In addition to providing information about the product; Value-added advertising transforms a product into something more appealing to consumers than the physical object produced in the factory. Therefore, it is a missing link between brand attributes and the customer perception, between product features and need fulfillment, .between benefits and values. Comparative ads- the advertiser compares the 2 brands of the same product category. The ad can be copied as the Pepsi and sprite example in the case. They have used the same story but both have them had a different approach. Informative ads- these ads are used to provide information to the consumer about different products and services. Health and Hygiene ads- these ads show that the product is taking care of the consumers health. It is emphasizing of the physical attribute of the product. What does the product do? How does it help you? The ad tells you all. These are some of the techniques. Lifestyle ads- Another way to. nave an impact on the consumers mind is portraying the life-style of a successful person. Humorous ads- Humor in the advertisement is normally kept in order to create a light, jovial and likely kind of an atmosphere Demographic ads- these ads are meant for different segments based on age, sex etc. Farex Cereal Food for infants is an advertisement targeted directly towards the infants, as it comprises a healthy food for them. It is also targeted indirectly towards the mother. Packaging ads- Advertisement is trying to lure the customers to buy their products on the basis of the way they are brought in front of the consumers eyes ie. Packaging. Dabur has brought in different flavors in the market of fruit juice. E.g. Mango, Pineapple, Orange, Mixed Fruit Jete. All these are in different packages, i.e. 50 ml, 1000 ml, etc. They claim that unlike other juices, which have preservatives in them, these products are without preservatives. Hence, the punch line is Real Fruit Juice. Price ads- Marketers also lure the customers by showing in an advertisement that a product is available at a lesser price without any compromise on the standard. Cadbury India advertised the 5-Star chocolate by offering 30% more chocolate in its 5-Star bar for the same price. Celebrity ads- Celebrities are mainly used in the advertisement either to lure the rural people in buying a particular product or in forcing the young generation to buy the products. This is also called endorsement advertising.,{t is also used in portraying that a particular product is best inqtJality because a person who is also very well known in his/her field endorses it. The impact of these stars in advertisements enables the company to increase its sale. CHAPTER 3 I. RESEARCH METHODOLOGY II. RESEARCH OBJECTIVE The main objectives of the study are: 1. To assess current consumer sales promotion schemes in the market 2. To assess how consumers differentiate the products based on advertisements 3. To get an insight into retailers views regarding the schemes being offered in toilet soap category, and consumer perceptions 4. To study consumer perceptions regarding various schemes in this category and responses toward them. 5. To study the various methods of differentiation. 6. To analyze the methodology adopted by companies to target end consumers. 7. To address basic business questions like: Do companies have the right product/service to offer? How companies reach their customers? How the buying power can be created? To prepare new business strategies RESEARCH METHODOLOGY Methodology: Technique used for the survey is questionnaires, focus group discussions and interviews. In order to address the above questions an exploratory study was conducted. The idea was to probe and get deeper insight into sales promotion scenario in toilet soap market and to tap perceptions of retailers and consumers. In order to address above mentioned objectives (i) study of secondary sources was carried out, 10(ii) in-depth interview of six retailers was undertaken and 11(iii) structured questionnaire was designed to seek consumer responses. Convenience sampling was used for both retailers as well as consumer studies. Six retailers ranging from small kirana store to supermarket were approached. All the retailers were located in the Noida. The respondents for consumer study were postgraduate students in the age group of 19-24 belonging to middle and upper middle and upper class. The total respondents were 30 in number. They were residing in hostel or as PG hence sole decision-makers for t his category. Also this age-group being more experimental and likely to be more deal prone, so their perceptions, preferences would give some insights to companies planning sales promotions targeted at them. Scope and Limitations: The geographical scope of the study was restricted to the NOIDA city due to time and resource constraints. The study being exploratory in nature, the sample size was restricted to 30 consumers (student group) and 6 retailers. Focus being mainly on in-depth probing, the generalizations drawn are only indicative and not conclusive. CHAPTER 3 I. FMCG AN INTRODUCTION II. INDIAN CONTEXT III. MARKET OPPORTUNITIES IV. EVOLUTION AND CHARECTERSTICS FMCG -FAST MOVING CONSUMER GOODS BRIEF DECRIPTION OF INDIA FMCG MARKET MARKET OPPORTUNITIES IN FMCG: According to Estimates based on Chinas current per capita Consumption, the Indian FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. The dominance of Indian markets by unbranded products, change in eating habits and the increased affordability of the growing Indian population presents an opportunity to makers of branded products, who can convert consumers to branded products. Penetration level in most product categories like jams, toothpaste, skin care, hair wash etc in India is low. The contrast is particularly striking between the rural and urban segments the average consumption by rural households is much lower than their urban counterparts. Low penetration indicates the existence of unsaturated markets, which are likely to expand as the income levels rise. This provides an excellent opportunity for the industry players in the form of a vastly untapped market. Moreover, per capita consumption in most of the FMCG categories (including the high penetration categories) in India is low as compared to both the developed markets and other emerging economies. A rise in per capita consumption, with improvement in incomes and affordability and change in tastes and preferences, is further expected to boost FMCG demand. Growth is also likely to come from consumer upgrading, especially in the matured product categories EVOLUTION:  § 1950s-80s Low Investment in the sector Low purchasing power Govts emphasis on small scale sector HLL and other companys urbane focus  § Post liberalization Entry of MNCs Focus shifted to getting to rural consumer first Others, like Nestle, remained with the urban population Latest fad to hit the market is the ‘sachet bug.  § Mushrooming of regional brands Nirma enters and changes the focus to ‘Value for Money in the 70s Post liberalization, Jyothi Laboratories, ‘Ghari Detergent and ‘Anchor toothpaste giving the nation-wide brands a run for their money. CHARECTERSTICS: FORECAST 2010:  § Rural and semi-urban  § 128 million population thrice the urban  § Market size growth from 48k to 100k Crores (Growth of 50% at 10%CAGR)  § Increase penetration from the current less than 1%  § Problems in the rural sector * Low per capita disposable incomes * Large number of daily wage earners * Acute dependence on vagaries of monsoon * Seasonal consumption * Poor infrastructure roads and power supply  § Urban  § Market 16.5k to 35k Crores (Growth of 100% at 20%CAGR)  § Intense competition severe pressure on margins Focus on newer products, such as fruit juices Source: Assocham Report ‘Future Prospects of FMCG CHAPTER 5 I. UNDERSTANDING DIFFRENTIATION II. TYPES OF DIFFRENTIATION III. THE INDIAN CONTEXT I. II. UNDERSTANDING DIFFERENTIATION: Differentiation is the process of adding a set of meaningful and valued differences that distinguish a companys offering from those of its competitors. Differentiation is strongest when it satisfies all of the following criteria: 1. Important: the difference delivers a highly valued benefit to a sufficient number of buyers 2. Distinctive: the difference can be delivered in a clear way 3. Superior: the difference is a better way of obtaining a benefit 4. Pre-emptive: the difference cannot be easily copied 5. Affordable: the buyer can afford to pay for the difference 6. Profitable: the company will earn a return by maintaining the difference BRAND loyalty in fast moving consumer goods categories is a topical issue, with several brands resorting to price cuts across categories. More importantly, price cuts or sales promotion by themselves do not seem to have done much for brands in terms of sustaining brand loyalty. They may attract consumers in the short run: consumers may stock the brands and consumers new to the brand may try it. But over a period of time, a brands value may get diluted in consumers psyche, and will eventually lose a strong base of consumers. The following are some aspects of marketing mix elements and consumer behavior which could contribute to brand loyalty. Product differentiation If the products are differentiated in their characteristics and this difference is perceivable, there are chances of brand loyalty being formed based on satisfaction with greater performance or fit of product with needs. In this case, loyalty is driven by functional or symbolic benefits. Functional benefits would be specific tangible features of the product whereas symbolic benefits would be intangibles such as brand personality and `hedonistic value of purchase. Price differentiation If the price differentiation in the market is perceivable, price-led loyalty might exist in the market. Price-led loyalty is practised by supermarkets, airline companies and FMCG brands, which come out with frequent sales promotions based on freebies. Alternatively, price might be taken as an indicator of brand quality, and the customer might go in for higher priced options. Price-led loyalty has to be carefully considered with other marketing mix elements and the consumer should never perceive dilution, especially in low-priced bands. Hence, lower prices should create a sense of value through the product offerings as well as through communication. Branding activity If the category is organized and there is branding activity, there will be greater loyalty than there would have been if the category were unorganized. Branding activities can differentiate between brands on name, symbol, images and associations. Branding activity in this context refers to creating strong associations which will influence the consumers not only with regard to functional attributes but also with symbolism. Hamam soaps portrayal of its pure ingredients with the child and mother imagery is a good example of one of these dimensions. Branding activities in a broad sense could range from advertising to sales promotion and public relations involving several aspects. III. The Indian context The following were the observations from the literature survey and the examples chosen from the Indian context. The factors indicate that there will be a large segment of consumers for whom price-led loyalty will dominate. Hence there will be strong behavioural loyalty in the segment and only weak attitudinal loyalty. There is thus spurious loyalty in this sector. There is a moderate level of symbolic and functional differentiation which has been exploited by strong brands to build a loyal following. Examples of this include brands such as Dove, Ponds Dreamflower talcum powder, Gold Flake, Wills Navy Cut, Amul and Cadbury. These brands have probably built strong attitudinal loyalty through their brand personality and other brand building efforts. In the FMCG sector, brand habit is high whereas attitudinal loyalty is low. As creating attitudinal loyalty based on functional differentiation is difficult, symbolic differentiation is the key. Building strong brand personalities and associated symbolic benefits is important for crafting customer loyalty. The factors discussed cannot be treated in isolation: they are to provide a synergy to result in brand loyalty. The combination of these factors and the timing of the combination is the topical challenge which marketers face in an environment where loyalty is slowly eroding. Local challengers Some of the most successful FMCG brands in 2002 came, not from the stables of a Hindustan Lever and a Colgate, but from obscure regional players such as Kaleesuwari Refineries, Parakh Foods, Anchor Switchboards and Kanpur Detergents. Over the past couple of years, brands such as Gold Winner and Gemini in refined oils, Anchor White in toothpastes and Ghari in detergents have managed to sustain double digit growth rates, even as the market leaders have struggled to hold on to single digit growth rates for their brands. Yes, the comparison is unfair, as the local brands had a minuscule base to start with. But these brands have demonstrated it is not impossible for a new challenger to break into the traditional bastion of one or two large FMCG players. Traditionally, large FMCG categories in India have been dominated by just one or two players, who rule the roost by dint of their sheer financial muscle and distribution reach. But, of late, successful regional brands have been finding chinks in their armour. And how! Aggressive pricing In the edible oils market, as national players were forced to hike their selling prices in response to rising commodity prices, both Gemini and Gold Winner have used aggressive pricing to woo consumers away from the national brands. Packed tea too, has seen similar trends. The limited differentiation in grocery and the flexibility offered by a restricted area of operations have stood these companies in good stead. Anchor White, among the few debutants in the toothpaste market to garner a significant share, first wooed the retail trade with high distribution margins, and then used rock-bottom prices to lure consumers into trying the product. Though none of these companies can match the market leaders in adspend, they have used focused regional and local advertising to draw consumers attention to their brands. The mushrooming of local and regional media has undoubtedly helped the local players milk the most from their ad budgets. Banking on `power brands While the local brands have been adding to their brand portfolios, the market leaders have largely stayed off new product launches. In keeping with its power brand strategy, Hindustan Levers marketing strategies in 2002 revolved around rejigging and relaunching established brands such as Lifebuoy, Rin, Surf and Vim. The company phased out brands such as Sunlight in detergents, and Jai in toilet soaps, so as to focus better on its 30 power brands. The strategy appears to have worked, as brands such as Lifebuoy and Rin have moved into a higher growth trajectory after the relaunch. In fact, HLLs power brand strategy has found a few followers in the FMCG market, with companies such as Godrej Consumer also announcing plans to focus on a clutch of key brands. Streamlining and spend While the power brand strategy has helped the leading players put their marketing prowess behind their most important brands, it has not really helped them save on ad spend. For most FMCG companies, advertising and promotion spends in 2002 grew faster than their sales. In high penetration categories such as soaps, detergents and toothpastes, marketing efforts of the players revolved around persuading existing consumers to use more of the product or to upgrade to a higher-priced brand. The slew of 100 gm free for every 150 gm offers in toothpastes and the series of promos on the 2 kg packs of premium detergents were both intended to induce existing consumers of a product to pep up their usage of the brand. Companies operating in relatively low-penetration categories such as chocolates, shampoos and skin creams tailored their marketing strategies to bringing in new users, through scaled-down versions of their brands in affordable pack sizes. The low-priced Chocostik, a liquid chocolate in a small-sized pack, launched by Nestle India, has helped pep up the companys topline and is now a large contributor to the companys revenues. Nestle India is now trying out a similar small-sized Rs 5 pack for Maggi noodles. Shampoos have been among the few FMCG categories to register a positive growth rate in 2002, and growth in this category has been driven mainly by sachet packs and by scaled-down 50 ml bottles priced at less than Rs 10. Overall, the FMCG slowdown of the past three years has served a useful purpose. At one level, it has made sure that the dominant players in the market no longer enjoy unlimited pricing power, as they have in the past. There now appears to be a greater effort on the part of the players to hold selling prices and look at their own operations to save on cost. At another level, the emergence of the regional challengers has made sure that consumers of FMCG products have a few more choices in their purchases of essentials. Is selling soap the same as selling a TV? It isnt. The difference is how the particular product is sold and more importantly, how is it distributed. India is a unique market, where the manufacturers who deliver products at the doorstep, which is the ideal way to deliver anything, spoil our consumers. We have an extremely evolved distribution mechanism for most products. Different products are sent to the consumer differently. Depending on the number, the price of the product and the complexity of the selling process, they may vary from direct selling to selling through a channel that may have as many as four levels between the manufacturer and the consumer. A look at a few of them will show what it means to be a sales person of that product. Most FMCG (fast moving consumer goods) products are not hard-sold to the end consumers. Sales are built up largely by pull a technique using advertising and consumer promotion. The sell-in happens to the trade i.e. to various members of the distribution channel the CarryingForwarding/Super-stockist, the distributor, the wholesaler and most importantly the retailer, who is the interface with the end-consumer. This chain forms the most important link in getting the product economically to the consumers doorstep. A large MNC in the FMCG industry may be covering as many as 1 million outlets across the country with the help of thousands of distributors. Even a mid-sized company covers at the least 1 lakh outlets. Factoring in the vagaries of operating in more than 25 different states, each with its own sales tax complexities, different consumer needs, differences in the distribution structure, not forgetting differing octroi structures within a state, distribution is extremely complex in India. If the sell-in does not happen to this channel for whatever reason or is sub- optimal, a product is likely to fail. CHAPTER 3 I. UNDERSTANDING ADVERTISEMENT II. UNDERSTANDING SALES- PROMOTION III. CREATING DIFFRENTIATION THROUGH ADVERTISEMENT IV. PROBLEMS FACED BY MARKETERS I. UNDERSTANDING ADVERTISEMENTS Whether it is a serial in a regional satellite channel or a One Day International cricket match, there is a non-stop stream of advertisements, which clutter the commercial break. Well-established brands attempt to sustain brand recall while new ones try appealing to prospective consumers to get into their `consideration set. There are ads for children, housewives and youth. With advertising expenditure in the order of Rs. 8000 Crores per annum in the recent times and the proliferation of brands across categories, there is a strong need to consider the effectiveness of these advertisements. The idea is not to cease advertising but to consider how considering decisions would have to be considered with non-advertising alternatives. These non-advertising alternatives may also enable a brand to create and sustain consistent associations, which may be desirable in terms of long-term implications. A contemporary approach that creates a synergy between various aspects of a promotional mix (a dvertising included) provides a refreshing approach towards marketing communications. There may be several objectives of advertising and a promotional mix could be used in an innovative manner to address each of these objectives depending on the product category and target segment. Creating-brand-awareness When a new brand enters a category or creates a â€Å"new to the market† offering, it needs to create brand awareness. This would depend on whether the product is a consumable or a durable. The involvement level in a speci

Ethical modifications on marketing relations Essay

In this paper I will analyze and assess legal and ethical modifications on marketing relations as it relates to both consumers and organizations. This research will analyze three to five ethical issues that relates to marketing and advertising, intellectual property, and regulation of product safety. The discussion of arguing for or against Direct-to-Consumer (DTC) marketing by drug companies will also be analyze. This paper will also determine who regulates compounding pharmacies under the current regulatory scheme, what the Food and Drug Administration (FDA) could/should have done in the PharmaCARE scenario and whether the FDA should be granted more power over compounding pharmacies. Throughout this paper the decision on whether PharmaCARE’s use of Colberian intellectual property would be ethical in accordance with: Utilitarianism, Deontology, Virtue ethics, Ethics of care, and my own moral / ethical compass will be discussed. There will be an analysis discussed on the way PharmaCARE uses U.S. law to protect its own intellectual property while co-opting intellectual property in Colberia. A discussion will be determined at least three ways the company could compensate the people and nation of Colberia for the use of its intellectual property and the damage to its environment. Compare PharmaCARE’s actions with those of at least one real-world company whose creativity in skirting legal technicalities led to ethical lapses and financial loss. Be able to determine the success PharmaCARE and WellCo shareholders would have in suits against the companies. Determine whether or not PharmaCARE lives up to its brand. Recommend at least three changes PharmaCARE can make to be more ethical going forward. Ethical Issues Ethical issues are situations or problems that calls for a person to choose between two alternatives. In marketing and advertising ethical issues can arise when advertising weakens or undermines personal autonomy. Also, it promotes consumption as way of life and it destroys credence in the written or spoken word (Ethics, 2013). In intellectual property it creates a monopoly for firms and enables them to charge prices for their innovations that are more than the marginal cost of the production. When valuable products are given intellectual property protection this creates an ethical issues (Sonderholm, 2010). In regulation of product safety everyone within  the company are expected to act and abide by the company’s Code of Ethics or conduct (McBain and Balassone, 2012). As a result, of the ethical theories being used throughout this paper, one can see how the drug companies are important and what they need to do in order to obtain and maintain their clientele. The different t heories applied throughout this paper have discussed how important the theories are and how they can interrelated to better understand how drug companies operate. Overall, the drug companies should use the distributive justice theory to provide and distribute health care evenly to all individuals. Direct-to-Consumer There have been several different theories used to either argue for or against Direct-to-Consumer (DTC) marketing by drug companies. The ever increasing cost of health will continue to present health care issues and ethical challenges that will result in a better understanding of how to use ethical tools when looking for the best drug companies for an individual. Therefore, ethical theories and principles will help to focus on the clearer direction one must take in order to make a decision about one’s future. Regulates Food and Drug Administration State boards of pharmacy typically regulate compounding by pharmacies, but federal legislation also plays a role. The Food and Drug Administration (FDA) could have force PharmaCARE to shutdown because of how they were operating. They were operating under extreme working conditions. The people in Colberia were being exploited (hazardous working environment) and taking advantage of (wages). This type of working environment is unethical. The FDA will continue to provide proactive and for-cause inspections of compounding pharmacies, and FDA plans to take aggressive action, including enforcement actions, as appropriate to protect the public health and the people of Colberia. The FDA should be granted more power over compounding pharmacies because FDA has been conducting inspections of compounding pharmacies for cause and proactively to identify pharmacies with deficient sterile compounding practices. There have been more problems identified at compounding pharmacies across the country and the FDA intends to continue its inspection and enforcement efforts to address these problems, using currently available resources (FDA, 2013). PharmaCARE and Colberian Ethical theories represent the grand ideas on which guiding principles are based. The theories that will be used throughout this paper will discuss how important ethical theory is and when implement in a company how effective they will be for the company. The use of utilitarian refers to all action should be directed toward achieving the greatest happiness for the greatest number of people. In other words, the utilitarian approach implies that insurance companies should insure some type of insurance to all people because this makes unhealthy people healthier sooner than without insurance due to the cost and high price of physicians. The stakeholder’s theory implies that business ethics discussions are based on the responsibilities of the decisions from managers and executives (Luxury, 2007). Deontology Virtue ethics Ethics of care Own moral and ethical compass In Kant’s categorical imperative, he refers to how everyone should be treated as a free person and should be equal to everyone else (Luxury, 2007). Therefore, drug companies should not choose to do the same thing for the same reason for all their patients. In using adverse selection, it refers to how different individuals that are on one side of the market have better information than the other individuals do on the other side of the market (Luxury, 2007). The drug companies will offer the wealthy a cheaper price over the poor and this type of behavior is unethical. Therefore, the poor will start doing things that makes it hard for them to obtain the products from the drug companies. Health care is necessary to meet everyone’s health needs and thus to promote equality of opportunity, which is such an important value in American political culture. According to Childress (2000), he states that Dan Brock’s interpretation of health care is, â€Å"While health careâ €™s impact on people’s well being is fundamental to why justice requires that it be available to all, it is possible to capture most of this impact of health care under the concept of opportunity. It is health care’s role in promoting equality of opportunity that makes ensuring access to health care for all a fundamental requirement of justice† (30). Analyze PharmaCARE PharmaCARE uses the U.S. law to protects its own intellectual property by ensuring that the patents, copyrights and trademarks are protected. This enables people and other organizations to earn recognition or financial benefits from what they create or produce. Although, these rights extends only to the U.S. anyone who desires to patent, copyright or trademark protection in other countries will have to apply for to patent, copyright or trademark in each country that they choice because each country has their own patent, copyright and trademark law (Intellectual, 2013). Compensate the people of Colberia PharmaCare can compensate the people and nation of Colberia by cleaning up the environment such as using safe and healthy products to eliminate the hardzarous chemical smell and spill. They can offer the employees better wages and health insurance. By offering better wages for the people this can help them continue pour in revenue for their country, helping the country to begin to prosper. The company can also make the working conditions in the building better so that the employees will be able to come to work in a healthier working environment. If all of these suggestions are completed then the people and nation of Colberia can start to live a better life. Real Word Company Hospira manages it task environment in accordance with setting goals and working to meet the goals of the organization (Thompson, 2007). When the pharmaceutical company sets a safety goal is regards to OSHA’s goal, then they work vigoursly towards maintaining this goal, so they will not be in violation. They believe that this is a unique opportunity for human resource to step in and take the lead in developing tools and capabilities. This will help to identify and strike down on barriers that keep employees from doing their very best. According to Sullivan (2006), the challenges that need to be address are how to increase the output volume that the organization faces on a daily basis; what would be an innovation for continuous improvement; and what would the employee recommend to the organization for improvement and change.The critical part for human resources is being able to align  their mission and priorities of the organization and engaging the minds of employees in thei r work (Pomeroy, 2006). The challenges that need to be addressed are in organizational design, hiring the most talented person and moving people around to different locations. Success PharmaCare and WellCo The shareholders of PharmaCARE would have a stockholder’s derivative action against them because of the improper management of the company. According to Hill and Hill (1985-2005) stockholder’s derivative action is a lawsuit governed by corporation’s shareholders to help protect the corporation and shareholder’s benefits against any wrongdoings and improper management from the corporation. The shareholders of WellCo. have a stockholder’s action against PharmaCARE for failure to provide due diligence before the transaction of purchase took place. The company failed to provide all the necessary information to WellCo. and in return WellCo. is now responsible for all of the assets and liabilities that PharmaCARE created before the purchase. PharmaCARE is now free from all of the debt and liability the company created therefore, PharmaCARE success depends on the company’s continued products that are delivered to their clients without the adverse re actions of the development and marketing product of AD23. PhamaCARE brand The following information will determine why PharmaCARE lives up to its brand. When talking about the rational system perspective, PharmaCARE portrays their ability in this way because they enforces a strong urge for growth and with their concise and clear goals set, they have proven this and is maintaining their status. They have become a great organization by ensuring their rules and regulations are enforced (Scott and Davis, 2007). In the natural system perspective, they have highly motivated individuals who are willing to work harder and smarter to obtain a clear since of pride (Scott and Davis, 2007). They focus on their mission and vision statement and they stand by it in order for them and the organization to be prosperous. In the open system perspective, PharmaCARE has maintained the change and have grown to an organization of pride and prestige. They still invest in the right product and ensure they spend their money on profitable means. Therefore, making it cheaper for cons umers to buy their products and for the organization to make a profit. The major challenges that PharmaCARE  will be facing in the next two to three years will be how they will withstand their financial responsibilities and keeping their clientele. These challenges are most important because as PharmaCARE continues to make products they will continue to be introduced to new clients and they must be able to meet the demands of the clients. Their financial responsibilities comes into play when they have to try to come up with new products and if they are already over budget then the new products will not be able to be completed. In addition, by PharmaCARE trying to keep up with other pharmaceutical companies and clientele, this leads to the employees working longer hours and are not compensated for their work. This situation can end up with some of PharmaCARE’s employees leaving to work for the competition. Therefore, PharmaCARE must ensure that their financial and client responsibilities are met in order for PharmaCARE to stay a successful organization and meets the needs of their employees. PharmaCARE has implemented a human resource department and they focus on continued success within the organization. Although, the human resource department is a department of its’ own, this department runs the organization because everything must go through this department for any changes. Therefore, the change in thi s human resource department for PharmaCARE would be in the best interest for this organization. Recommendation I recommend the following actions for change with PharmaCARE for strategic purposes. They are analyzing, forecasting, planning, implementing and evaluating. In analyzing the overall workforce, planning system should be well thought out, systematic and documented. The effectiveness of planning depends on the detail, accuracy and reliability of the information sources. It is important to identify all factors that could influence future demand for outputs service as well as competencies of the internal and external supply of labor (Scott and Davis, 2007). Information that is gathered during the analyzing phase must be reliable and accurate. In forecasting, PharmaCARE should consider the future needs of the organization. One of the most useful outcomes is the identification of potential problems or issues facing the organization. The data collected from the information sources should help develop a gap analysis and emergent strategies to manage the future. It involves the identification of any predicted changes and  developments that may result from a demand and supply chain (Thompson, 2007). In planning, strategies initiatives, programs and policies should be developed to address the gaps within PharmaCARE. This will ensure that the recruitment and development will be critical of a needed staff for a successful workforce plan. In implementing, it is critically important to put together an implementation plan to carry out the planned activities included in the workforce plan. According to Scott and Davis (2007), this will be the process for using all the information gathered and devising a plan to execute the new strategies. In evaluating, there should be an evaluation of the workforce plan because this is imperative in determining if the devised strategies are addressing the gaps specified. It is important to obtain feedback concerning the effectiveness of outcomes from the plan. PharmaCARE should design a plan that would be more effective in the managerial and business aspect of the organization. A logical implementation plan for a human resource program for PharmaCARE would be to offer a new set of curriculum and qualifications opportunities that is truly built around the needs and as pirations of each employee. By matching the best employees in the organization, PharmaCARE would allow all employees to have opportunities to learn in ways, which motivate and pushes them to work harder for a successful and well deserve future (Mathis and Jackson, 2006). PharmaCARE’s human resource program works in the area of development, such that managers are mentors to supervisors. This allows growth and knowledge within the organization. PharmaCARE prides itself in being a successful organization and will be served better with the right approach to the implementation initiative. Human resources will have more flexibility in hiring, supporting and managing their people. PharmaCARE should do the following in order to become a more successful organization. Increased flexibility will strengthen accountability based on transparency, fairness and respect. Human resource management relations will become more collaborative with both management and employees working together to foster a mature, healthy and productive workplace. The goal is to make it easier to attract, hire, support and retain the best people. This is a great opportunity if it is done right, PharmaCARE will be a better place for people to work and will provide better service to th eir employees and customers. References Childress, J.F. (2000). Summary and Synthesis of Papers and Discussion at Ethics in Oral Health Policy Seminar. Retrieved from http://www.nidcr.nih.gov/NR/rdonlyres/7E3F3CDF-B133-4503-B8C1-049793F869D9/0/Childress.pdf Ethics of Advertising (2013). Retrieved from http://www.carroll.edu/msmillie/busethics/ethadvertising.htm FDA Implementation of the Compounding Quality Act. (2013). U.S. Food and Drug Administration. U.S. Department of Health and Human Services. Retrieved from http://www.fda.gov/Drugs/GuidanceComplianceRegulatoryInformation/PharmacyCompounding/ucm375804.htm Hill, G. & Hill, K. (1981-2005). Shareholder’s Derivative Action. The Free Dictionary. Retrieved from http://legal-dictionary.thefreedictionary.com/shareholder’s+derivative+action Intellectual Property Law and Policy. (2013). The United States Patent and Trademark Office and Agency of the Department of Commerce. Retrieved from http://www.uspto.gov/ip/ Luxury primary care-market innovation or threat to a ccess? (2007). The New England Journal of Medicine. Massachusetts Medical Society, 346(15) 1165-1168. Retrieved from http://content.nejm.org/cgi/content/extract/346/15/1165 Mathis, R. & Jackson, J. (2006). Human Resource Management. (11th Ed.). New York. Thomason-South-Western. McBain, J. & Balassone, J (2012). Product Safety Case Studies. Santa Clara University. Retrieved from http://www.scu.edu/ethics/dialogue/candc/cases/product-safety.html Pomeroy, Ann (2006). Society of Human Resource Management. HR Is Mission Critical at the FBI. Volume 51, No.6. Retrieved from SHRM Online http://www.shrm.org/hrmagazine/articles/0606/0606pomeroy.asp Scott, W.R., & Davis, G. (2007). Organizations and organizing: Rational, natural, and open system perspectives. Upper Saddle River, NJ: Pearson Prentice Hall. Sonderholm, J. (2010). Ethical Issues Surrounding Intellectual Property Rights. Wiley Online Library. Retrieved from http://onlinelibrary.wiley.com/doi/10.1111/j.1747-9991.2010.00358.x/abstra ct Sullivan, John. (2006). Workforce Management. HR’s New Opportunity: Removing Barriers to Productivity. Retrieved from http://www.workforce.com/section/01/article/24/38/30.html

The Effects of Military Governance in Nigeria Essay

Nigeria is an oil-rich state located in the eastern part of African. Since gaining independence in 1960, it has faced numerous regime changes. These fluctuations in stable governance have both positively and negatively affected the livelihood of the Nigerian people. The struggle for power has been a toss-up between civilian governments and militaristic dictators, each fighting to gain control of the lucrative oil reserves. As the military seeks to rid corruption from the ruling body, it has brought additional struggles to everyday life in Nigeria. Military governments in Nigeria have proven to be detrimental to the political strive towards democracy, the economic struggle to eliminate debt, and the livelihood of local Africans.†¦show more content†¦The actions of the military eventually led society to lose faith in the state’s abilities. The Nigerian people were no longer confident that the ruling government could solve the basic problems it encountered. This l ack of support presents the question of why did society ever allow the military to assume control in the first place? The Nigerian people never thought the military would maintain their grip on power as they have. Society was content with the harsh changes made by the military. Many people felt these changes were necessary to remove corruption and restore order. They also expected, however, that once the military resumed is natural duties, the harsh governance would cease. But what society did not expect was that the military would remain in power for thirteen consecutive years (Joseph 1987, 67). The military rulers had a very different governing style than civilian democracies. The leadership usually consisted of a few elites who made decisions for everyone else. The government had advisors, sometimes civilian, for support with daily actions (Bratton 1997, 80). This style of rule did not allow for societal recognition in political matters. 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The Legacy Of John Fitzgerald Kennedy - 1748 Words

Inaugurated in January of 1961, John Fitzgerald Kennedy (or â€Å"JFK†) was the youngest president to ever hold office, as well as the first catholic. Following a heroic tour in the Navy during World War II, with the backing of his father’s immense wealth JFK abandoned a career in journalism to fulfill his deceased brother’s dream of becoming the first catholic president (Freidal and Sidey). After writing two best-selling books and rapidly advancing through political offices, Kennedy ran for president in the election of 1960. He chose Lyndon B. Johnson as his running mate and won by a narrow margin over future president Richard Nixon (History.com). The first several months of Kennedy’s term proved to be eventful, with the Bay of Pigs†¦show more content†¦President John F. Kennedy positioned himself to be the most impactful, charismatic, and progressive presidents of all time before his untimely death. Before he held the title of President of t he United States, John Fitzgerald Kennedy was born into a wealthy family on May 29,1917 (Freidal and Sidey). His father had accumulated wealth likely by bootlegging or making illegal business transactions, although these theories have been disputed. Regardless of how his family earned their wealth, Kennedy was very well off. He attended Harvard and graduated in 1940, originally desiring to become a journalist. Kennedy then went on to serve in the Navy during World War II and was praised as a hero after sustaining severe injuries he led his men away from their cruiser sunk by Japan (White House). After the war, John mourned the loss of his brother Joe Jr. and abandoned his pursuit of a career in journalism, turning to politics instead. He wished to fulfill his father’s vision for Joe Jr. by becoming the first Catholic President of the United States (White House). Kennedy quickly flew through political offices, and at the age of twenty-nine he entered congress. In 1952, Kennedy moved from the House of Representatives to the Senate, and a year later married Jaqueline (or â€Å"Jackie†) Lee Bouvier. Kennedy was then set back for a short amount of time for surgery on his back, and during this time wrote a book that would go on to win a Pulitzer prize in 1957. In 1960,