Significant Considerations in the Purchase of Consumer Durables: A Study of Rural Consumer in Punjab

- -B S Hundal

This paper discusses the significant considerations in the purchase of consumer durables (Refrigerator, Washing Machine, TV and Air Cooler) for rural consumers in Punjab with the help of advanced statistical approach `Factor Analysis'. Finally, it presents a brief picture on intensity of brand loyalty of rural consumer.

© 2008 IUP . All Rights Reserved.

Use of Coercive Strategies in Purchase Decisions: Relationship Between Influence Strategies and the Degree of Involvement

- -Jagrook Dawra and Kanupriya Katyal

The paper examines family purchase-decision dynamics that contribute to enhance marketing communication effectiveness. Of particular interest is understanding the nature of spousal behavioral interaction in family decision-making to help marketers target communication messages, shape brand choice, and guide personal selling activities. The paper also examines the relationship between influence strategies and the degree of involvement in a purchase decision.

© 2008 IUP . All Rights Reserved.

Evolution of Market Segmentation

- -Disha Mahajan, Navneeta Agarwal and Anand Agarwal

Recently, there has been a lot of criticism about the utility of segmentation as a marketing tool. Many authors have suggested that the way the segmentation is carried out by marketers nowadays does not provide much help and value to them. In order to study in detail, the concept of segmentation and its utility in the present marketing environment, this paper presents a brief evolution of segmentation as a concept and practice.The aim of this secondary research is to trace the dynamics of segmentation since the origin of the concept. The study may provide useful insights to researchers and the practitioners concerned with market segmentation and marketing strategies formulations.

© 2008 IUP . All Rights Reserved.

Brand Architecture and its Application in Strategic Marketing: The Example of L'Oréal

- -R Harish

L'Oréal is one of the world's most successful cosmetics and beauty products companies, which has been consistently achieving volume, value and profit growth even during times when its competitors have faced a setback. What is the secret behind this continued success? Many things perhaps, but its brand architecture strategy is definitely one of them. The company has an amazing plethora of brands and sub-brands — about 500 in number, which are marketed in around 130 countries. The use of brand architecture as a strategic marketing tool and its dovetailing with the overall marketing mix has put the French company, L'Oréal, in an advantageous position, compared to its competitors. There is perhaps a lesson in L'Oréal's approach to brand architecture for many other companies.

© 2008 IUP . All Rights Reserved.

Case Study

Will Gillette's Fusion Brand Match its Mach3 Brand's Success?

- -Sanghamitra Bhattacharya

In the late 1990s, Gillette, best known for its razors and blades, grabbed 15% market share in the US market by launching its Mach3 brand. Mach3 was a three bladed shaving system that allowed a shave with less pressure and fewer strokes and thus reduced skin irritation. In 2005, Mach3 with Mach3 Turbo and battery powered version M3Power captured 34% share in the US market. In the same year P&G acquired Gillette to make its market position stronger overseas. In January 2006, P&G-Gillette merger launched the manual and power versions of a five bladed razor shaving system named as `Fusion' in the US, UK and Canada. Gillette charged $12 to $13 for a pack of four Fusion cartridges and the same number of Fusion Power cartridges was priced at $13 to $14. However, analysts estimated that Fusion's market share had been far weaker than what Gillette saw after Mach3 and Mach3 Power launches and the reason behind this was the price structure of Fusion. Analysts predicted that the price of the Fusion manual was 80% higher than Mach3 manual and that of Fusion Power was 30% higher than Mach3 Power cartridges. Though Gillette argued that, since Fusion was a luxury brand it was costlier than the previous Gillette razors and blades, when the sales of its razors and blades fell by 5% in 2006, the company planned to cut the price of its Fusion brand. This decision was however, not taken unilaterally by Gillette but the company asked its retailers to help it make a decision. The company at the same time paid more attention to the promotional activities of Fusion. Despite this, industry observers were skeptical about the success of Fusion. Would Gillette succeed in promoting its Fusion brand and achieve the same success as it did with Mach3 in 1998?

© 2008 IRC. All Rights Reserved.

Book Review

We Are Like That Only: Understanding the Logic of Consumer India Author: Rama Bijapurkar

- -Reviewed by Maruthi R Suresh

© 2008 IUP holds the copyright for the review. All Rights Reserved.