ATL, BTL

The terms ‘Above the line (ATL)’ and ‘Below the line (BTL)’ came into being when way back in 1954 when Proctor and Gamble started using various payment rates to its advertising agency based on what its target audience reach was.

‘Above The Line’ (ATL) advertising is an advertising where mass media is used to promote brands to reach out to the target consumers which includes radio and television advertising, conventional media as we knows it, internet as well as print. Here, the communication is targeted to a thick spread of audience, and is not specific to individual consumers. ATL advertising attempts to reach out to the mass as consumer audience. In 2012, Parachute decided to own the most significant positioning platform “World’s Best Hair.” The campaign featured the celebrity endorser Deepika Padukone which was on air in most of the channels. The campaign involved  digital in a big way and was based on a research finding that consumers of Parachute Advansed Hair Oil had better hair than the non-users. It was not just the research but the positioning platform which was totally strong and influential. By taking the ownership of “World’s Best Hair” and backing it up with a research, Parachute Advansed moved a step up in terms of positioning. The brand put itself into a strong position and compelled the competitors to do something powerful to compete with it. As for the consumers are concerned, the campaign not only bolstered their choice of using Parachute hair oil for hair protection but also induced non-users to try out the product.

‘Below the line’ (BTL) advertising is mostly about one-to-one communication and involves the allocation of pamphlets, stickers, brochures, promotions, handbills placed at point of sale, on the roads through placards and banners. Product samplings and demos at places like market places or malls or residential complexes are also a part of it. For example, moving hoardings or road shows with the advertisement of the product, and vehicles with promotional staff interacting with people substantiating the product and distributing literature on the product. Less conventional methods are used of advertising being very distinct channels of advertising unlike ATL. It also contains telemarketing PR, sales promotions targeted at particular potential customer and direct mail promotional campaigns.Since internet penetration is low, Parachute got tied up with magazines, attached bottle of Parachute Advansed Coconut Oil and a pre-addressed envelope sent with every copy with message, ‘try this and if you like it, recommend it to a friend by posting back envelope to us.’ Friend would later receive a letter, an oil bottle and two envelopes.

However, digital media in today’s world has more or less broken the limits of ATL versus BTL. Digital communication has the potential to address both at the same time. Interestingly, there is a new phrase called Through the Line, or TTL, which assimilates activities of both ATL and BTL. The concept of line is sinking gradually with agencies increasingly using the Integrated Communication approach. And to recapitulate all this, O&M’s Piyush Pandey can be quoted who rightly exclaims that “It is not a question of mass media versus below the line or above-the-line anymore. It is an era of mass media plus the line.”

Distribution Decisions

Channel Design:

Various channels for Parachute Hair Oil include - wholesalers, retailers, sales agent, and advertising agencies.

Parachute Hair Oil employs both pull and push strategy. A push strategy uses trade promotion money, manufacturer’s sales force or other means to induce intermediaries to carry, promote, and sell the product to customers. The benefits that Parachute Hair Oil provides are well understood by the customers. Parachute uses majorly a pull strategy product which use promotion, advertising and other forms of communication to a very large extent.

Value: The Company should first decide and narrow down on a target market, target group and then take into consideration the demand of the product. Designing of the supply chain backward from that target group should be done leading to a demand chain planning and thus selecting a value network.

Decision Making:

Analysing Customer Needs and Wants:

Consumers choose the channels they prefer based on convenience, price as well as their shopping motivates. Parachute hair oil is often used in small quantities by consumers. The waiting and delivery time is almost nothing as the product is available readily to be picked up from the shelf at any store.

Establishing Objectives and Constraints:

Channel objectives vary with product characteristics. Parachute Oil products are transported in bulks to stores and therefore channels that minimize the shipping distance and handling amount is used. This provides appropriate level of service and helps reduces the cost.

Distribution Decision: The distribution channels help businesses meet their marketing sales objectives. Marketing channels not only serve the market and but also help make markets. These channels must be in accordance to the company's strategy with respect to segmentation, targeting and positioning.

Importance of Distribution:

1)  Distribution constitutes a significant competitive advantage and is designed to save on cost, improve and increase efficiency, provide easier transactions, provide larger customer base, and allows businesses to focus on other aspects of the organization.

2) Businesses with brand strategy, strategic promotion and convenience for customers is provided.

3) Channels that are poorly chosen can have long term consequences and can ultimately lead to a failure in the market.

Retailing, Wholesaling and Logistics

Wholesaler: Sell at a margin of 8-10%. Sell at local Kirana stores in case the stock is left over.

Kirana Store: The product is purchased at MRP and a margin fixed by the distributor of the company is earned.

Super Markets: Buyers decide on pricing Strategies depending on the locality and nearby retailers. Products can be sold at a discount of Re1 or 50 paisa for Parachute Hair Oil.

Hyper Markets: They sell in packs of 3 and reduce the total MRP by Rs 5-8. Small SKU's are at times available for free with the product.

Branding

Branding is defined as the, “ name, term, sign, symbol or design or a combination of them intended to identify the goods and services of one seller or a group of sellers" by the American Marketing Associations (AMA). Branding is aimed at making the product stand out so as to communicate the look and feel of the product to the potential targeted customers. Branding is not restricted to the logo and tagline of the product but incorporates inculcating various strategies that helps in the better positioning of the product or services in order to aid better recall of the product by the customer at the time of purchase.

Elements of Branding (Product-Parachute)

Brand Awareness

Parachute creates awareness about its product through various mediums like print, radio, television and digital.

Eg. Campaigns like “Shudhta ki Pehchaan” and “Kamaal Ka Dhakkan”

Kamaal Ka Dhakkan Campaign

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Brand Imagery

It projects itself as a herbal solution oil for hair care. It uses colors like Blue and Green for this purpose.

Slogans

It uses slogans like “gorgeous humesha”, “Lambe baal bhule to kaise”, “Worlds best hair” and “100% Purity”.

Logo

The logo is simple and resonates it purpose of being a herbal oil. The color code is green and blue and a simple green image of a coconut is used to serve the purpose of it signifying the oil being made of coconut.

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Brand Promise

Parachute assures its customers on delivering healthy nourished hair through the use of the their product. It also ensures repairing damaged hair and the betterment of the hair quality in terms of volume, texture, length and various other aspects.

Brand Personality

The brand has constantly being trying to change itself from the traditional old hair caring brand to a new advanced form of hair care solution in order to connect to the younger generation customers. From being the first preference of the head of the family, it has a major crossover to being a choice of today’s informed trendy youth who are taking hair care problems seriously.

Brand Credibility

Parachute has maintained its image as a “pure coconut oil” and has not been involved in any crisis till date. This has created and given the brand a very good credibility in the minds of the customers that is often envious to the other brands. It is an affordable, non sticky hair oil available in various fragrances and used extensively by both urban and rural areas.