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Volume 3 / Edition 1

2014


MAGMA

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Defense Marketing By– Ajendra Patil

W

orld’s largest democracy, 7th Largest in the world in terms of the area covered with mighty Himalayan ranges to a

stretch of 2500 KM in the north, encompassed by a massive coastline of 7500 KM by the Indian ocean in the south and having a huge terrain of deserts, rocky hills, plateaus, and rainforests. Considering such a massive expanse of land and water which can be eyed upon by anyone to have it for themselves, Indians live a peaceful life in this regards. Owing to the fact that the Indian defence's Strength, commitment and efforts to protect these riches is unparalleled to any nation.

There is no shortage of dis-

Officers in the army, 1,400 in

playing patriotism in the country

the navy and 1,100 in the Air

but when it comes to enrolling

force. It is not as if the shortfall

oneself to live up to those patriot-

has spurred suddenly, in the

ic promises, we fall short of the

1960's, 50,'s and 70's the short-

appropriate

per

fall was in the range of 12-15

Defence Minister A.K. Anthony's

%. But the next three decades

written reply to a query in July

saw an increase in this per-

2012 in the Lok Sabha the army

centage up to 23%.

talent.

As

was facing a shortage of 10,100


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Marketing

would

be

an

The Government has in the

inappropriate term to explain the

past

military’s challenge in attracting

various events and ads to promote

talent. Although the process for

the Indian Army. Various days in

getting selected as an officer in

the National Calendar are accord-

the army is extremely difficult and

ed to the army and defence in

requires various qualifications and

general

skills apart form the test and inter-

Independence day, Republic Day,

views to be passed. But even a

Army Day, Flag Day etc.

normal business and corporates

and

also

which

currently

include

Independence

Day

and

the

most

Republic

best of talent as managers. A

important dates in the Army calen-

McKinsey & Co led report “War for

dar. These are the two days when

Talent� published in 2007, reiter-

the nation watches in awe at the

ates this very same fact on facing

supremacy of our defence power.

challenges

and

The republic days main attraction

talent,

are the parades which starts from

marketing

Raisini Hill, all our might including

attracting

retaining

top-quality

despite

savvy

strategies.

are

the

face this problem of recruiting

in

day

done

air ,land and water are displayed in a grandeur manner.


MAGMA

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The army is to promote itself and stay connected with the digital age and the techno savvy youth has started using the social media platform to convey on-going happenings in the army. They have used the anchorage of two famous social media site.

Facebook: (h t t p s :/ / w w w .f a ce bo o k .co m / Indianarmy.adgpi) and twitter (@adgpi). Th e Fa ce bo o k pag e w as launched on May 15, 2013. The pages are highly active and diligently post each and every official occurring along with motivational facts and stories on the page. Below are some of the images from the page.

Twitter: The Twitter handle of Indian Army is @adgpi, which represents the Additional Directorate General of Public Information for Indian Army. Through their tweets the army is keeping the civil citizens up to date with the ongoing work and accomplishments as and when they happen, very much on the lines of their Facebook page. Below are some of their tweets. The social media has become a window of opportunity for the Indian army were they not only get to advertise and promote themselves but also interact with people and get to know their reactions first hand. They have a peculiar way of tweeting by uploading a pic with every tweet they make so that it becomes more appealing and connecting to the normal public.


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AAP ki MARKETING T

By– Jyothis Mohan

he recent victory for the Aam Aadmi Party (AAP) at the Delhi elections was astonishing as the relatively new entrant (nearly one year old party) in the Indian Politics changed the way it was perceived. The two behemoths of Indian Politics Congress and BJP both of which had by turns ruled India over the past six decades had witnessed a rare phenomenon of change that was wrought from the hearts of the common man. It was a chance happening as the party claims- from a national movement of ‘India against Corruption’ launched by activist Anna Hazare to protest against the ills plaguing the administration to having registered themselves as a state party successfully meeting the Election Commission’s criteria.

So what did this small novice party with its broom-wielding party members do right to banish all the harsh scepticism from the seasoned parties in politics? Was it just beginner’s luck that catapulted this party into the centre stage or was it a strategy so well planned and executed at the right time that it caught the eye and heart of the final jury of Indian politics- the Aam Aadmi or the common man. Looking at AAP with a marketing viewpoint we get a glimpse of how the latter is true. At the same time

it also brings to the fore a stark reality that the common man is wary of the divisive, manipulative and ineffective politics of the elite clan of seasoned politicians. In marketing terminology, AAP started out as a ‘niche’ but soon gathered wide public attention and appeal amidst a lot of controversies. Arvind Kejriwal, the man behind AAP has effectively managed to create a buzz around his idea and to build a feeling of coherence through his political movement all the while transforming sceptics along the way into party-believers and followers.


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THE IDEA: A great product builds a great brand. It must be radical and innovative often incremental on the existing products but it must connect with the target audience. Clear transparent governance at a time of increasing angst against the unaccountable existing politics was the great idea or product that Kejriwal conceived. This ‘idea’ had to click and to make it click it was essential to build it with public support. The idea was to take the governance to the common man which was well beyond his reach other than when the high rise political elections took place. He did not understand the political jar-

gons or the convoluted laws that ruled his life but only how the daily prices determined his living. AAP therefore concentrated on the ordinary problems like the electricity tariffs, high prices of daily goods as such. It positioned itself as a party by, for and of the common man or the Aam Aadmi. This positioning gave the people a belief, a hope that there will a better future and that it will be carved by the common man fed up with the doubled edged politics of the politics. AAP’s promise was to take the governance to the people who elected it in the first place. And looking at the recent happenings in Delhi it seems that they have fairly succeeded.

BRAND ICON: Every brand must create an intangible presence in the minds of customers so much so that the mention of the idea must involuntarily remind the customer of the brand. Think of non-violence and we are reminded of Mahatma Gandhi. The photocopy is synonymous with the company Xerox. Over time these ideas have become

one with the brand and they are inseparable. Arvind Kejriwal took the long road when he decided to embark upon as the political icon for anti-corruption and what better symbol to choose than the ‘broom’ which signifies the party cleaning out the households of Indian politics. The broom as an election symbol connects with everyone from masses to classes.


MAGMA BRAND IMAGE: Practising what a brand preaches is a crucial element in its success as the initial perception of the brand is developed by the aesthetics and look that the brand exhibits. A retired IRS officer could well be wearing a jacket or a suit but the ordinary clothing of the party leader who is mostly seen in an old fading sweater represents the image that the party portrays. Further refusal to accept the royalties that accompany the pivotal position of chief minister and his day to day interaction with the common folk as just another ordinary person has created much hype among the masses.

Page 6 CONSUMER FOCUS: AAP’s communication strategy was quite different from its competitors. No big national rallies or political speeches that gained media attention. Kejriwal and his party members decided on a more conventional marketing which was often dismissed by other parties as being too orthodox or obsolete. AAP opted for conventional word of mouth publicity distributing pamphlets and posters about their party that brought about a more personalized connect with the masses. But this does not imply that the social media campaign was ignored. The amount of likes in Facebook for the official page of AAP crossed 6 and a half lakh while the party was followed by more than 8 lakh people on Twitter which is a huge social media presence for a one year old party. This unique strategy of both digital and personalized marketing did wonders for the party as is evident in the Delhi election results when Kejriwal ousted Sheila Dikshit by more than 25,864 votes.

This unique story of AAP’s success could be a strong motivational force and learning lesson for the young start-up companies daring to achieve big in this cluttered market of diverse industries. This success is also a testimonial to the fact that a proper customer centric approach at the right time using the effective channels of communication can work wonders in this dynamic world.


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BRAND RE-POSITIONING Brand repositioning is all about changing the status of your brand by modifying its appeal to Customers.

By– Girish Sapra BRAND POSITIONING is an art of creating a distinct image for a product in the minds of the customers. It is a medium through which the brands communicate to their target customers what they want to achieve for them and what it means to be associated with their respective brand. It includes a point of differentiation -which is either unique or creates a market niche that provides the organization with a

competitive advantage. A brand is more than just a logo or slogan. It is a distinctive image that portrays the entire organization and transcends a promise to everyone who experiences it- customers, stakeholders and employees. Jeff Bezos, founder and CEO of Amazon.com has rightly said, “A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well”.

Brand repositioning is essentially changing this very position that the company enjoys in the market and realigning its image to a new unique position. Confused??? The next paragraph will help make things clearer. Recently, Zee Entertainment Enterprises has Top of Form adopted a new corporate brand identity and positioning:“Vasudhaiva Kutumbakam ” - The world is my family. “Vasudhaiva Kutumbakam” (meaning 'The world is but one family'), is a Sanskrit dictum on shared humanity, promoting a world where there is unity, harmony, and respect for every individual irrespective of caste and creed. The company has unveiled a new brand logo that reflects the

new positioning for the corporate brand, which will be adopted in 169 countries where the broadcaster is present. The positioning and identity have also been extended to cover the group’s news and digital business verticals under one umbrella brand, Zee Media. This is how their logo has evolved over the years which gives clues of positioning used by the television network over the years.


MAGMA Why do companies reposition their brands is best explained through a classic example- Marlboro in 1920s had begun by selling women’s cigarette based on their popular slogan ‘Mild As May ’ . Th e se filtered cigarettes were popular among the ladies while the typical ‘macho’ males preferred the unfiltered ones. But after a study in 1950 which revealed that smoking was directly responsible for

Page 8 lung cancer, men were eager to transition to filtered cigarettes but were concerned about using the ladies’ brand. That was when the top guns of Marlboro decided to reposition their brand to better suit men too. A series of marketing campaigns and serious repositioning created the Marlboro Man which captured everything that Marlboro wished to convey. It was now, manly. And the rest as they say is history.

It is high time to reposition your brand when one or more of the following thoughts consistently flash through your mind: My customers have a general perception that my brand is rather outdatedYour brand may be old and reputed but the principal fact of business is that it is dynamic. Customers are constantly evolving and are aware of the latest trends in the market. They reach out to the brands that connect with them emotionally and functionally. If a new brand does both then it is just a matter of time before the old unresponsive brand loses market share and go obsolete. Sales are declining gradually- This is also one of the top reasons why Marlboro decided to reposition their brand in the early 1950s in the wake of the lung cancer scare. A scenario like this calls for immediate attention to lean back and figure out why this is happening. It

may be due to lack of fresh connect with the target audience or better alternative goods dominating the market. Either way it does not harm to consider repositioning your brand to better suit your prospects and take advantage of a new business opening in the market. My target group is small and scope could be widened- Another important reason for the historical Marlboro repositioning. Women were their principal target group for almost three decades until in the wake of the study that drastically changed the domain of cigarette smoking propelled them to make a 180 degree switch and go after the manliest of the men. It is worth thinking whether the customers we are targeting would make us the most money or not.


MAGMA The new entrant in the market has changed the game completely- Threat of new entrants is one of the main barriers in Porter’s five forces model. This threat is completely inevitable and impossible for any brand to comprehend beforehand. When such event occurs the brand must necessarily remodel its strategy and align itself with the current flow to stay in the business. Furthermore the repositioning methods have to inculcate a point of differentiation by which to create a separate market niche for itself and stay profitable. Brand position has become ambiguous with the change in top management or such other intrinsic factors- As new messages are added to a company the position it wishes to convey becomes confusing for the target group to connect with. With the change in top management the face and personality of the company encounters a shift. Sometimes the brand

Page 9 image gets ambiguous as time changes. It becomes imperative to then reposition the brand. A recent example is of Starbucks. Its recently redesigned logo has caused quite a stir among its most committed customers. These self-described loyal consumers possess a strong connection to the Starbucks brand and expressed their dislike for the newer, more rounded logo that drops the words “Starbucks Coffee” from the design. However, Karen Winterich, assistant professor of marketing at the Penn State Smeal College of Business, says that rounded designs tend to be more appealing to consumers in Eastern cultures. “If Starbucks continues to grow in these cultures, its revised logo, while perhaps upsetting to loyal U.S. customers, may appeal to its newest consumers in these collectivistic markets, and that may just be where it matters most,” says Winterich.

In the announcement of the new logo, Starbucks suggested that removing the words “Starbucks Coffee” from its logo opens the doors for growth into markets where noncoffee products outsell coffee-products. “Removing ‘Starbucks Coffee’ from the logo is likely the first step in repositioning the brand further from its coffee roots in the consumer’s mind,” adds Winterich. “Perhaps a future logo reveal on its 50th anniversary will include Starbucks’ name without the word ‘coffee’ ”.


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Micromax, the country's second-largest smartphone maker, changed its communication strategy last December after launching its flagship Canvas series, and Pal says consumer perception has changed significantly towards the brand. "While the Rs. 13,000- Rs 20,000 is currently the sweet spot in the smartphone segment, we want to further increase our presence in the premium-end with relevant products," he says. Roping in of Hugh Jackman served as a huge bet for the company. Rahul Sharma, Co-founder of Micromax said “I don’t want Micromax users to know Hugh Jackman because they are already my users. I want to influence those guys who know Hugh Jackman but not Micromax - and who are the opinion-makers. The trickle-down effect would happen from there. We want to change the perception of people when they see Micromax,” Micromax is trying to outgrow its current positioning with this strategy and this is an announcement of its intent to do the same. Whether it works for them remains to be seen.


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Social Media Facts More than 50% of small medium businesses say Facebook is beneficial to their business Source: Ad-ology Research

Twitter plays an active role in purchasing decisions for customers looking for new products and deals Source: Edison Research

Companies that use Twitter average twice as many leads than those that do not Source: MarketingCertified.com Blog articles play a role in influencing purchases and finding new products and services Source: Jupiter Research 46% of daily searches are for information on products or services Source: SRI 70% of the links search users click on are organic (natural), not paid Source: MarketingSherpa

20% of monthly Google searches are for local businesses Source: SRI

57% of businesses say social media is beneficial to their business Source: Ad-ology Research

63% of businesses say social media has increased marketing effectiveness Source: McKinsey Global Institute


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credits

TEAM Junior Buzz Marketing Club SIMSREE Ajendra Patil Aniket Ovhal Girish Sapra Jyothis Mohan Ketan Patil Liston Joseph Tushar Charde

Edited By Ketan Patil

Visit us at www.facebook.com/BUZZmarketingclub www.buzzsimsree.wordpress.com

Magma 3 1 (1)  

Buzz, The Marketing Club presents MAGMA Volume 3, Edition 1

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