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January 2013

CONTENTS Featured Articles

Page No

Reader’s Message

1

The Assault on the Mind

2

Festival Marketing

6

Some Biggest Branding Mistakes

11

Fight for mindshare of customers

17

Old Wine New Bottle

20

Crossword

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Reader’s Message It’s a new brand world. Behind every great brand is a fundamental core brand message: a compact statement that declares why the brand matters and what it stands for. A core brand message communicates the values and key differentiators that define the brand. And above all else, it makes people in a firm’s target audience sit up and care.We place on record our sincere thanks to all those who worked hard in bringing out this edition on time. The core brand message will shape all of a firm’s subsequent brand marketing messages. A firm’s tagline or ad slogan may closely match the words in its core brand message, or they can take a different form. What’s important is that all of a firm’s brand messages describe aspects of the brand that are relevant to the needs of customers. This edition is focused on branding and how various organizations in the past have used Branding as a powerful medium to conquer the market share. Articles also focus on new concept such as “Festival Marketing”, where festival help Marketers to come up with creative Advertising. The other article you might look in for would be biggest branding mistakes as most of them love to learn from mistakes. It’s time for us to take a lesson from the big brands, a lesson that’s true for anyone who’s interested in what it takes to stand out and prosper in the new world of work. Happy reading..!! Team Markezine

Editing and Design-

| Shivaraj | Sheeza Shakeel | Ishwarya Lakshmi | Nikhil Girhotra

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The Assault on the Mind of whatever-it-may-be product and drop it in to their shopping trolley. Here begins the art of persuasion and fighting it out for getting that coveted place in the mind of the customer.

The proclivity of a brand to create value reaches its zenith when it gets engraved in the psyche of the mass. Consumers face grave dilemmas of choosing between brands. The producers actually do capitalize on it. Getting a recall value in the mind space of customers is really an activity that companies need to work their backs off for. Managers are instrumental in bringing about change in the perceived value in a brand. In fact, it is required to travel that extra mile to reach the mind of its customers adding on to the gruelling processes involved in creating a product ranging from inception of an idea to R&D to production to packaging to reaching the shelves of your mom n pop store or a hypermarket. But from there on, the journey just gets far more tiring. It takes a great deal of persuasion on the part of the firm’s marketing communication for, the customer to stretch their hands out and take that pack C

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How do we recall brands? Do we recall Micromax or Karbonn if we are asked for the name of a business phone? Obviously not except for the case where you own a business and a Micromax or Karbonn phone. The answer will definitely be Blackberry. No one remembers or even knows Cibaca or Dabur toothpastes in India. It is either Colgate or Close-Up. If you are an affluent person with sensitive teeth, you might also have the name Sensodyne at your finger tips. It is the way we are conditioned to be. No one remembers a brand that comes in with a flashy ad and suddenly disappears off the screen, because along with that it disappears off the mind too. This is due to the fact that human mind is volatile; our memory span gets reloaded every time when we see an ad. But how do you convert this into total recall? Neither hoardings nor ads alone can do this. The product should elicit a response befitting the maximal quality of the product class it belongs to can offer. “What we have here is a failure to communicate” communicate is the single most common most universal reason given for problems to develop. MARKezine 2


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sage was further developed into our theory of “owning a word in people’s mind”. Volvo owns “safety” BMW owns “driving” FedEx owns “overnight” Crest owns “cavities”. Once you own a word in the mind, you have to use it or lose it.

Today communication is itself a problem. Positioning starts with a product, a piece of merchandise, a company, an institution or even a person or perhaps even you. But positioning is not what you do to a product. Positioning is what you do to the minds of the prospect. To be successful today, we must touch base with reality. And the reality that really counts is what’s already in the prospect’s mind. The basic approach of positioning is not to create something new and different, but to manipulate what’s already up there in mind. To retie the connections that already exists.

Kodak, Xerox, Coca-Cola, IBM, GE

The folly of trying to change a human mind becomes one of the most important tenets of the positioning concept. This is one principle which is most often violated by marketing professionals. Millions of dollars are wasted every day in the futile task, of trying to change the minds of their prospects.

The more we studied the human mind, the more we saw the relationship between the mind and the memory bank of a computer. To put a new brand into the mind, you have to delete or reposition the old brand that already occupies this category.

The best approach to take in our over communicated society is the oversimplified message. In communication, less is more. You have to sharpen your message to cut into the mind. The positioning concept of this oversimplified mes3 MARKezine

What do these brands have in common? They were all the first brands in the mind in their respective category. Today these brands are still leading their categories. “It’s better to be first than to be better” is by far the most powerful positioning idea. The hard way to get into a person’s mind is being second. Second is nowhere and hence the fight for mindshare!

The most important concept of mindshare is that mind works by ear, not by eye. So, before you can (Think small, Avis is No.2 etc) It’s not that pictures weren’t used; it’s just that the purpose of the visuals was to reinforce the verbal ideas into the mind. Many advertising agencies, on the other hand, still worship C

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the visuals. They love creating weird pictures that only cause visual distraction. Radio is truly the primary medium and “word of mouth” and primary communication vehicle. It’s ironic that virtually the entire advertising industry today is visually oriented. “A picture is worth a thousand words” is the battle cry used by companies like Coca-cola which uses polar bears, Budweiser (lizards) and Energizer (bunny). The Fortune 500 and savvy mid market consumer products approach the marketing function from a different angle from those of small to mid market companies. They start with a marketing research to implement a comprehensive strategy to penetrate their market, build their brand and win mindshare before they enter a market. While the mind may still be a mystery, we know one thing about it that is certain; it’s under attack. Most Western societies have become totally “over-communicated”. The explosion of media forms, and the ensuing increase in the volume of communications, has dramatically affected the way people either take in or ignore the information offered to them. Marketing people, and the minds of people they are trying to influence, are often in conflict. Customer’s perceptions are selective. And their memory is highly selective. This means that in a crowded category, your difference might not be enough unless it is a dramatic difference. More often than not, people buy what they think they should have. They’re sort of like sheep, following the flock. The main reason for such behaviour is insecurity. One reason is perceived risk in doing something C

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as basic as making a purchase. Customers tend to love underdogs but buy from the perceived leaders. If everyone else is buying, I should be buying it. When the market make up its mind about a product, there’s no changing the mind. Coca-Cola blew both prestige and money in an effort to convince the market they had a better thing than “the real thing.” No one bought the new Coke. But their Classic version sells as well as ever. Faced with the choice between changing customer’s mind and proving that there is no need to do so, everyone gets busy with the proof. In the fight for mindshare for customers, the well differentiated specialist tends to be the winner. These specialists tend to make an impression on the mind primarily because they focus on one product, one benefit and one message. This enables the market to put a sharp point on the message that quickly drives it into the mind. Dominos can focus on home delivery while Pizza Hut has to talk about its different pizzas, home delivery and sit-down service. Another strategy of the specialist is the ability to be perceived as the expert or the best at what they do. Whatever it is that they are known to do, they must do it well. Finally the specialist must become the “generic” for the category. Xerox became the generic word for copying (“Please Xerox this for me”) Federal Express became the generic word for overnight delivery(“I’ll FedEx it to you”) Making the brand names a generic is the ultimate weapon in fighting the battle of mindshare. Hence to win the battle for mindshare and influence the market, the following steps must be followed:

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1. Understand the position you own Position is thinking in reverse. What we must do is to find a way into the mind by hooking our product, service or concept to what’s already there. Don’t be narrow minded. As marketers, look at the big picture, not the details. 7-Up’s problem is not the prospect’s attitude towards lemon/lime drinks, but the overwhelming share of mind by the colas. “Get me a Soda” to many people, means a Coke or a Pepsi. Looking at the big picture helped Seven-Up develop its successful uncola program.

2. Determine the position you want to own Sometimes you want too much. You can want to own a position that’s too broad, probably a position that can’t be established in the prospect’s mind. It is important to establish a unique position as a specialist, not as a jack of all trades generalist.

3. Target whom to outrun. Trying to select a position that no one else has a firm grip on, is a wise decision. Spend time thinking about the situation from the point of view of your competitors as you do thinking about it from your own. 4. Check if you have the necessary money. A big obstacle to successful positioning is attempting to achieve the impossible. It takes money to 5 MARKezine

build a share of mind and to establish a position. It also takes money to hold a position once you’ve established it. There are just too many me-too products and too many me-too companies vying for the mind of the prospect. Getting noticed is getting tougher. 5. Can you stick it out? Think of our over communicated society as a constant crucible to change. As one idea replaces another in bewildering succession, it’s important to determine your basic position & then stick to it. With rare exceptions, a company must almost never change its basic positioning strategy. Owning a position in the mind is like owning a valuable asset. Once you give it up, you might find it impossible to get it back again. The line extension trap is a good example. By line extension, you are actually weakening the mindshare. And once that is gone, you are adrift without an anchor. Eg: Levi’s line extension into casual clothes (And then finding its basic positioning in “jeans” undermined by “designer label” jeans) The integral belief that a firm gets the maximum of the value once it reaches out to the consumers was once the ultimate height of success of that firm. Gone are those days. The current market scenario shows a whooping amount of companies fighting it out, not alone for sales and gaining market share, but also for getting that premium rental space in that not-soeasily available mind space of the customer. ‘Behold a turtle; he makes progress only when he sticks his neck out’. The need of the hour is the reverberative morphosis of consumer expectations.

Submitted by: Anand K V Ramyaa Ramesh Great Lakes Institute of Management, Chennai C

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Festival Marketing:

A Strategy no company gives a miss! Fanta: HoliHai!! Toh dikhao apne asli rang contest Engagement is the buzz word for the recent Fanta Holi campaign. The campaign includes design holi wacky quotes and the winners were given special tshirts which increases the consume involvement.

In India, it is hard to see a month refrained from a festival. Festivals are generally where people are at their peak of happiness. They are willing to spend and buy a lot of things. People mark their calendars if they want to make an important purchase like a car, house or something of that scale. But these days even FMCG companies are investing heavily in these festivals. They chase the slots to be noticed be it the traditional media like TV, Radio, Newspaper or the new entrants Social Media. Every festival has altogether different relation with people who are celebrating it. Many companies these days try to come up with innovative marketing campaign to leverage on these special occasions. In this article we have discussed few Indian as well as foreign examples and finally we have evaluated them on different parameters.

Indian Festivals

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Navratri - Be Innovative Radio’s on-ground push: Tie-up with major ‘garba’ events in the locality is one of the major trends for the season. For instance, Big FM has entered into partnerships with temples and major ‘garba’ venues across eight cities. Radio City has returned with its property ‘Garba Premier League’ and ‘Dandiya Premier League’. Aforementioned events are organized in Ahmedabad and Mumbai respectively and see various housing socie-

In Coke’s Diwali Carol, the four musketeers light enough diyas to power an entire city and have fire stations on red alert. But the big question was, were Indian consumers feeling the joy? This advertisement is cashing in on the festive season sentiment. Except that anybody who has grown up in a Diwalicelebrating culture knows that this is a -family festival, not a go-out-celebrate-with-others one. That’s Christmas, Holi perhaps (minus the hooliganism & harassment) and yes, even Ganesh Chaturti & Puja,

ties competing in Garba competitions.

but Diwali? That’s for diyas & rangolis inside the house, sweets with family.

Innovative on-air shows: Radio Mirchi has initiated Mirchi Musical Navras in its evening slot show Sunset Samosa. It is a nine-day series which will explore Bollywood music on the lines nine traditional ‘Rasas’. Oye! (104.9FM) has created a fictional on-air character named Jignesh Bhai to promote the Navratri fervor.

Raksha Bandhan - Use of Social Media Cadbury Raksha bandhan:

Diwali - Be Careful Coke: Do diyeaurjalao campaign (http://www.youtube. com/watch?v=o3W1jeyWb-o)

Tell your sister she is special campaign (https://www.facebook.com/cadburycelebrations/ app_190322544333196) Cadbury Celebrations had launched a multimedia campaign to connect the brand to the Raksha bandhan festival. Web films had been specially created for Raksha Bandhan, urging brothers to express their love to their sisters through the innovative Facebook contest ‘Tell your sister she is special’. 7 MARKezine

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A unique app was created on Facebook that showed siblings wishing each other in real time with their respective locations. This app was the focal point of the activity and all the other elements are directed to this for participation.

sored the project. Dove saw a rise in sales by 226% and 3.3 million impression across all social networks. Ma Jin ended up being a search trend in China and called as ‘carriage boy’. The critical point of the campaign was that it was well executed without spending a penny. Social media does have a power beyond the measurable to make such campaign a huge success. Halloween is one festival where people not only get creative with their costumes but also the marketing campaigns.

Global Festivals Qixi Festival, the Chinese Valentine’s Day on August 6th (2011), Dove wanted to find a new and innovative way to promote its chocolate gift set in China. So they decide to build a story called “The Dove Story” around an artist named Ma Jin. He wanted to build a heart shaped carriage to surprise his girl friend. The strategy was to leverage the Dove’s heart-shaped gift box as a means to do that. To garner enough money for this task, he sent out videos on the internet to amass the materials needed. This was based on insight that young lovers search online for inspiration to express their love on festive occasions. The response was phenomenal and the sharing of videos by the netizens was one of the reasons why Dove officially sponsored why Dove officially sponC

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The following is the print advertisement from a promotional campaign of Burger King in Argentina. The sauce dripping and the light setting give that spooky vampire look. Adjacent to it is McDonald’s advertisement. The resemblance of the same concept does exist but McDonalds has successfully used a ‘Burger’ which adds a connection to the consumer rather than a person depicted as Vampire. Comparing the following two print ads, McDonalds surely scores high on creativity.

The concept of Black Friday is the beginning of the Christmas shopping season in USA. All the retailers bombard with promotional offers and kicks off the holiday shopping season. Black Friday is the next day MARKezine 8


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of Thanksgiving and viewed as an extended holiday for it. It is not the retailers who jump onto this concept but companies like Balance Bar Co. (launching a new product) have introduced the Balance Bar Dark Line at 50% its actual price who make purchases on Drugstore.com through December 1. Analysis

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Submitted by: Anand Ingle, Tejas Choudhari PGP2 IIM Lucknow References

[2] Halloween at Burger King | The Inspiration Room; http://theinspirationroom.com/daily/2009/ halloween-at-burger-king/ [3] Black Friday (Shop ping) – Wikipedia, the free Encyclopedia; http:// en.wikipedia.org/wiki/Black_Friday_(shopping)

[1] How Dove Created a Successful Valentine’s Day Campaign Without Spending A Penny | Blog | Digital Marketing Institute; http://digitalmarketinginstitute.ie/blog/campaign/how-dove-createda-successful-valentine-s-day-campaign-withoutspending-a-penny#.UKf44of0Mpo C

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SOME BIGGEST BRANDING MISTAKES 13BB (13 Branding Blunders)

“We learn from failure, not from success!” Bram Stoker

they obtain from the product or service

Yesterday Morning, I woke up at 5 a.m. and searching for my toothpaste i.e. Pepsodent Germicheck. But I was whispering Where is my Colgate Where is my Colgate??

WHY IS BRANDING REALLY IMPORTANT?? Jo dikhta h, Vo bikta h..

We Indians use different-different toothpastes but know them from one name i.e. Colgate. Here is one more interesting incidentMy nephew likes Maggi so much as every child does. One day, my mom bought some noodles (of any domestic local company) from a Kirana shop packaged in a transparent polybag. As he saw the bag, my nephew screamed – Maggi …!! This is known as Brands not just the toothpastes or noodles. Every toothpaste reminds us about Colgate and every noodle reminds us about Maggi. A name becomes a brand when consumers associate t with a set of tangible and intangible benefits that 11 MARKezine

It is the seller’s promise to deliver the same bundle of benefits/services consistently to buyers

The image is now everything Today, Branding is necessary like a Music Band system in marriage, or Candidate’s speeches before elections without which everything becomes tasteless or even worse. It’s useful to create an image in the minds of customers and to protect products from failure. Gone are the days, when shoppers used to ask to shopkeepers about the particular product and shopkeeper r used to give them anything available. Now, customers trust the brands. Adding Human factor to the product has become essential for surviving of brands. Earlier, it was a seller’s market. People had to buy which is available in the market. Now due to increased no. of companies, People have many choices C

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and it has become a buyer’s market. Instead of just focusing on what an enterprise selling to its customers, it must think of what a customer is buyingWhat a company sells: LOTION What people buy: FEELING AND SMELLING ATTRACTIVE What a company sells: SHOES AND SNEAKERS What people buy: HOPE OF BETTER ATHLETIC PERFORMANCE.

don’t truly believe there’s a huge difference between products,’ which means brands have to establish ‘emotional ties’ with their customers. And it’s not a onetime process, once you’ve created a necessary tie with customers, you got to take care of it. People want change and that is why almost every good company has changed something in it, either advertisements, appearance of products etc.

Many of the brands failed just because they forgot to

* Not knowing what exactly branding is – Branding is not only about creating a beautiful col-

address the two sides every brand has: What does it stand for and What it is opposed to. If the brand image gets spoiled through any media scandal or a controversial incident or even a baseless rumour spread on the internet, then it may create a big trouble for company. Now, Peoples psychological and emotional factors are attached with the brands.

ourful logo, and Punch line. It is more than simply running to have attended. A brand warrants attention on a consistent basis, it must represent something that customers want but they don’t get it from competitors. For example, it could be providing the best customer service in your industry — not just through your tagline or logo — by actually providing the best customer service in your industry.

Brands are everything. Companies live or die on the power of their brands.

* Not considering geographical factorsEvery country has different geographical attributes like culture, tastes, preferences etc. Company has to make sure that it’s branding campaign supports and according to geography where it’s going to promote itself. E.g. Coca Cola’s Grape drink in chile.

The purpose of this article is to look at a wide variety of brand failures, and in order to explore the various ways in which companies can get branding wrong. WHY BRANDS FAIL (SOME BIGGEST BRANDING MISTAKES) ?? Let’s first see what the key to create and maintain a brand is: There’s only one reason why some brands like Coca Cola, Apple, Nike etc. are doing pretty well in the business, and it is their emotional and psychological tie with customers. And this is the reason why companies blame brands rather products. Scott Bedbury, Starbucks’ former vice-president of marketing, controversially admitted that ‘consumers C

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When the company attempted to launch a new grape flavoured drink, it soon discovered that the Chileans were not interested. Apparently, Chileans preferred Wine as their grape drink. * Not doing the right market searchA well defined, structured, and implemented market research convert the products into brands. Domino’s Pizza in Japan: Domino’s Pizza tried to enter the Japanese market MARKezine 12


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even though Japanese consumers tend not to eat lots of tomato based foods, many have an allergy to dairy products, and complex navigation was required to deliver the pizza through the streets of Tokyo. Domino’s should have conducted market research before entering into Japan.

* Don’t let them forget your brand (Inconsistency in brand identity) Today, 21st generation is very fast. An average person does more than 50 tasks per day. Companies have to put some efforts to make their brands memorable. When a brand forgets what it is supposed to stand for, it goes into trouble e.g. When Coca-Cola tried to replace its original formula with New Coke. The results were disastrous. The company must use the same name, logo, and punch line in every communication. Customers must be familiar with company name, logo, tagline, and colours set in their mind map. * Either differentiate or die (Not maintaining the brand) When a brand faces competition, it has to innovate or improve itself. It happens too often in a shaky economy or competitive market, businesses tend to change or alter their identity. Too much of this changing activity, confuses the steady customers and creates a reason for lowering down the image. For example, think of PepsiCo , for instance, has used 13 MARKezine

Blue-Red logo for years. One rule of thumb rule says that when you’ve become tired of your logo, tagline, and branding activities, that’s when they begin to sink in with consumers. * Not having the suitable taglineThe tagline is the one of the most important identity of a company. If it doesn’t match with the business reality, customers will not believe the business anymore and WOM (Word Of Mouth) will become the way of spreading negative words. Wal-Mart’s tag line is “Always low prices. Always” and it’s true and goes best with their business. They are telling us you are saving money every time you shopped in our store. * Are you dedicated to marketing plan? Earning profit and creating an ideal image are two different things, later is quite good. Many companies market themselves and establish a brand identity but have neither the resources nor a plan as to how they will reach their audience. The best example is KFC. KFC didn’t know about Indian tastes and difference. Just brand name is not enough. A company must have a well-prepared branding and marketing before planning any branding strategy . * Not having good CRMThe WOM (Word Of Mouth) is the best way to promote yourself. Customer feedback is very important for every brand. Ask people about brands, Do they know about you?, Do they like you ? Having a good customer feedback will work very well for improvement of brands. C

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Customers, who give good feedback, company quote them in the brochure and publicize it. * Not taking the things analyticallyBranding is not just about creating a logo, and tag line for the business. A brand wants attention of people on a consistent basis, not for one month or a year. Think logically that What the customer wants ? Shall we change ? Many business while running to create brands forgets about smaller and very important things that is giving the best service to customers that no one can do. Different and satisfactory. * Are you trying to appease everyone ? Can you ?The key to successful business and branding is knowing your customers, segment them. You can’t make everyone happy. Choosing the right product for the right people at the right time by right mean is what we say technique of successful brand creation. * Not attacking on E.Q.In their busy schedule, if you can make them laugh, people will remember your ad for the entire day. Today, most of the successful brands have laughter or sentimental way to present their brand and advertise to appease people. E.g. Cadbury – Kuchh Meetha Ho Jaye. You may not use or like that particular brand but you’ll like the advertisement. * Using typical vocabulary and jargonsHow an educated rural person will feel like, if a company promote its product using too much typical words. In Villages, Do What Villagers Do – It’s just a small example. For better communication and well delivery of your brand to people, your promotional campaign and languages should be local and understandable, so that everyone can attach him/herself to it Because Jargons don’t benefit to business. C

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E.g. KFC in Hongkong: KFC’s ‘Finger lickin’ good’ tagline has been used in all the world for its tastiness. But, It’s Chinese translation says ‘eat your fingers off’, when it came to Hong Kong, most consumers opted for fries instead. One of the most important factors to contribute to the success of today’s brands in India is they’ve reached the untapped rural market with local advancements and enrichment. * Going the opposite of your imageIf Nirma launches Chocolate brand , Would you like to consume it ? May be Yes but the image that Nirma carries in Indians mind is Soap product. So, when we remember the word - Nirma , soap or surf powder comes in mind. Every person knows what image a well known and famous company has for him/her. Even companies must also know. If you launch any product that goes different from your image in customers’ mind then it may become a disaster. E.g. Country Time Lemon Drink was launched by Kraft Food in 1976 as powder mix. It has created a good sale and helped company to gain an image. But after this success, the company launched one new apple drink – “Apple Cider”, which was a failure. Just because that brand simply meant lemonade for customers. Another one of the most disastrous failure was Colgate’s entry in food segments i.e. MARKezine 14


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Colgate Kitchen Entrees. Most of the people didn’t find Colgate name familiar with their taste buds. Conclusion: Today, Every company is fighting in cutthroat competition to survive and groom. In this perfect competition, Companies have to promote their brand very carefully and taking care of all above mentioned mistakes. Every single mistake can results with disastrous results that company may not forget for its life time. Author: Devendra Singh Rathore Amity Business School (MBA-General) STARBUCKS AND NOT TATA STARBUCKS – A BRANDING MISTAKE? This article delves into what I believe is one of the biggest branding mistakes of recent times. It is concerned with the latest talk of the town - STARBUCKS .I am sure you would know that Starbucks India is a joint venture between the global Starbucks brand and India’s TATA. But TATA’s name has been left out while launching the desi version of the coffee superpower. Is this a good decision or has Starbucks missed a trick or two? Let’s investigate this case! Brand TATA One that is more than 100 years old and one that was rated as the second most trusted brand in India 15 MARKezine

and among the top 50 firms according to brand equity by global consultancy firm ‘Brand Finance’. Considering such numbers has Starbucks missed a trick or two by not branding their Indian version as just Starbucks and not TATA Starbucks? It definitely seems so Tata as a coffee brand is the single largest corporate player in the Indian coffee market and has played a major role in freeing the coffee economy from the shackles that had limited its growth since 1952. Also it is the world’s largest integrated coffee plantation company in the world. Starbucks as a brand is known for delivering superior products and services. The image of Starbucks is that of a premium brand that offers high quality service at a higher price, of course. While this joint venture of TATA with Starbucks gives TATA the much needed global leverage, it gives Starbucks entry into the huge Indian coffee market Considering these facts, including the brand TATA in the name of the venture makes a lot of sense. This is because only the people who keenly follow the world of business would be aware that TATA is behind the presence of Starbucks in India. The others would be in the dark about this important fact and thus the huge opportunity due to brand TATA is lost. Also, presence of the word ‘TATA’ in the brand name C

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brings that warmth to the whole franchise and makes it so much more closer to the thousands of middle class households that look upon TATA as one of the most reputed brands in the country . Has Starbucks just missed the opportunity to make its coffee smoking hot? It definitely seems so!

Submitted by:

ByDeepak.R Xavier Institute of Management Bhubaneshwar

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Fight for mindshare of customers One of the primary goals of a company is to make customers think of their brands more than their competitors. Thus mindshare is the amount of consumer awareness created by a particular product or service. In other words, mindshare is nothing but the consumer’s perception towards a product or service. Companies often talk about market share with great honour, treating it as the “San graal or holy grail” in measuring the success of an enterprise. Acquiring more market share keeps a company pushing forward, and how much of it they do not possess keeps them awake. But in my point of view, market share is generally for small business firms whom use it for the purpose of comparing their financial reports with that of larger business firms i.e. a comparative way to see how your business looks in the short term. Hence market share cannot be used as an indicator in case of larger business firms. In those cases, it is wise to find out mindshare of customers which is one of the best assets of a company’s long term health. How to win mindshare of a customer? The three essential factors required to win the mindshare of a customer are discussed here. 1. Always offer a product superior in quality Nowadays, it is important to sell products that meet 17 MARKezine

the needs of a customer. Also those products must be innovative, socially aware and well made. The recent changes in the economy have made the process of buying decision extremely difficult for consumers, and they are no longer always looking for the lowest price as the “breaking point” for purchases. Today, shoppers opt for products that may cost more but deliver a superior quality or experience in return. Now, customers are looking to get access to the latest features of the products that were unavailable previously, get something that complies to social ethics that they are in, or be sure that the making of the product is in such a way that the product will last longer. Hence you can win customer mindshare by concentrating on the communion between quality and price. The products have to be made of the best materials available and also pricing of the product play an important role. 2. Availability of the product Even though if your product is best/superior in the world, once if it is not available throughout means, there is a more chance that, you will quickly lose mindshare of your customers. Availability means making sure that your product is available in those C

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places that can be accessed by our customers easily. Availability means running out of your product in some rare occasions. It also means guaranteeing that once your customers know they want your product, they can get it very quickly and with as little resistance as possible.

one what you want or what your problem is and then discovering that, that person did not pay attention to what you said and you are in need to explain it again? Let your customer talk and realize him that you are listening by making the appropriate responses, such as suggesting how to solve the problem.

3. Customer service Turban, Efraim defines customer service as “a series of activities designed to enhance the level of customer satisfaction i.e. the feeling that a product or ser-

d) Deal with complaints None of us like hearing complaints, and many of us have developed a reflex gesture, saying, “You cannot satisfy all the people all the time”. You may be able

vice has met the customer expectation.” Hence good customer service is the “Lifeblood” of any business. The mindshare built up by your great product can be easily lost once, if you do not get the customer service component right. Every contact a customer has with your company is an opportunity to earn more mindshare. The following 8 rules are essential for good customer service.

to please one person at one time if you give attention to his complaint.

a) Always answer your phone Always make sure that someone is picking up the phone when someone calls your business. Hire staff if you need to. People who call would like to talk to a live person and not to a fake “recorded voice”. b) Never make promises unless you keep them Reliability is one of the keys to any good relationship and it is also applicable to good customer service. If you say, “Your household furniture will be delivered on Friday”, make sure it is delivered on Friday. Otherwise, do not say it. The same rule applies to client appointments, deadlines, etc. Think twice before making any promise - because nothing annoys customers more than a broken one. c) Listen to your customers Is there anything more irritating than telling someC

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e) Be helpful - even if there is no immediate profit in it “You reap what you show”. Accordance with the proverb, always show your customers that you are good at customer service. Though it may not yield immediate profit, it will help your customers in realizing your good customer service. f) Give training to your staff to be always helpful, courteous, and knowledgeable Training has to be imparted on the employees of your organization. They must be taught about good customer service and what it is (and is not) regularly. Most importantly, give enough information and power to all your staffs so that they can make those small customer-pleasing decisions by themselves. It also helps employees of your organization to feel comfortable that they have been given some sort of powers to act on their own. g) Walk an extra mile For instance, if someone walks into your store & asks you to help them find something, do not just say, “It is in row 5”. Take the customer to the item. Also, wait MARKezine 18


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and see if he has any questions about it, or further needs. We can provide good customer service only by walking an extra mile. h) Throw something additionally Whether it is a coupon for a future discount, additional information on how to use the product, or a genuine smile, people love to get more than they thought they were getting. Thus Customer service not only helps you to retain your existing customers but also helps you in acquir-

involvement of people with a particular and rare set of social gifts i.e.90% of your present customers are brought to you by 10% of your contacts (customers. Friends etc) who like you”. Conclusion Mindshare is a marketing term which can be used to denote the amount of talk generated by a particular product or service within the public or media. For example, most consumers may think of Maggi when asked to name a noodles, or Adidas when asked to name a company that makes running shoes. Hence mindshare not only helps you to get market share but also product information, reputation and short or long term increase in sales

Submitted by: ing new customers for your business. Why mindshare matters the most than market share? If you are a small business firm, earning mindshare matters the most than capturing market share because it offers you a feedback that can help promote your business, rather than indicates how your business has performed in accordance with the industry standards. It also gives you an instant read on your progress, and monitoring it helps you to identify possible problems while they are still small. Once if you win mindshare battle, market share will follow automatically. Customers who are happy with you will become your natural ambassadors or ambassadors of your product i.e. they will start recommending you to others. “The Law of the Few” states, “The success of any kind of social epidemic is heavily dependent on the 19 MARKezine

M.Vivek Full Time Research Scholar Department of Banking Technology School of Management Pondicherry University Puducherry

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Old Wine New Bottle (Casual Observervations) Ever imagined a person buying a 25 year old case of ROYAL STAG whisky for a premium, a person buying WAGH BAKRI Earl Grey tea or another one going for BRITANNIA’S Parle-G chocolate chip biscuits. Possible but highly unlikely. Why such a scenario is so difficult to imagine? Because when a company launches a product in the market it targets a particular segment. After identifying the segment the company channels all its energies to that particular segment to reap maximum benefits. With the marketing campaign the company attaches an identity to that product. People start identifying the product from the marketing campaign carefully spun around them. They differentiate it from other products available in the market. I would like to ask another question. Would you buy an ultra luxury sedan offering all the features of a ROLLS ROYCE with the badge of MARUTI SUZUKI even at half the price? Majority of us would not even blink before answering this. Forget this one. How many would buy a 1000cc superbike if the bike would sport a badge of MAHINDRA? I think we all know the answer to this question as well. It takes decades for a company to build the kind of brand value and identification Rolls Royce created for its cars. Let us talk about one of the grandest failures in Indian automotive industry. This car gained internaC

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tional acclaim by winning the ‘Most Beautiful Automobile’ award at the Milan Auto Show and ‘Best Small Car’ at the UK Motor show. Winner of 12 international and national awards, the most ever by any small car, it captured the entire nation’s imagination upon its launch. Economic recession in the parent country and operations failure dealt a severe blow to the car manufacturer and the car faded in oblivion. The remains of the company were bought by an American major and the car was re-launched all over the world including India. After rebranding and a facelift, the car clocked astonishing sales and helped the new manufacturers of the car to establish a foothold in the fiercely competitive auto sector. The name of the car is CHEVROLET SPARK. This car changed the fortunes of GENERAL MOTORS in India. An iconic scooter brand that captured the imagination of millions worldwide, darling of the masses in India, had the rug pulled off from beneath in the late nineties. There was a time when you had to book a unit, months in advance. The consumer shift from scooters to motorbikes at that time did the maximum damage. Year 2012, this scooter is again available for sale in the Indian market. Re-branding and re-positioning couldn’t revive the fortunes of the scooter. LML VESPA. Do we see a pattern emerging? No. But why did a car succeed in re-establishing itself but a scooter did not? Is the answer simple? Yes. MARKezine 20


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When General Motors re-launched the Daewoo Matiz in India, they did a few things right. First and foremost was to position the car in the same segment. The marketing campaign focussed on the youngsters and the middle class. No fancy words, just a cool car with a great design and a very attractive price. The car was available in the price range of 3,00,000 Rs. in the year 2000 and 2012 as well. Vespa has launched an entirely different product with the same brand name. What image comes to

the first scooter rolled out in the market from their stable. Yes, the brand name of Vespa has instant recognition in the market. It is a tried and tested brand. But it remains to be seen whether people will buy a premium product from a company synonymous with affordability and the common man in mind. It is still early days to write off the product. But perception is the key in the Indian market. Many a company have failed in front of lesser mortals, just because their perception was not right.

Submitted by:

UTSAV AGARWAL Institute of Rural Management Anand (IRMA)

your mind when someone says Vespa? I am sure many would be able to recall that curvaceous model which looked far better than the scooters available at that time. We would also recall that the scooter was affordable and was a routine sight on the Indian roads. Now Vespa has launched a premium product in the Indian market. It costs upwards of 65,000 Rs. You can buy premium bikes for such an exorbitant sum. The price of a standard LML Vespa used to be in the vicinity of 35,000 Rs. Can they justify this price in the psyche of an average Indian with the same brand name? The brand name which gave this product an aura of affordability right from the time when 21 MARKezine

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Crossword-

Markezine Challenge.. France. What is it known as in India..? 6. Adolf Hitler was highly influential in creating this Famous car brand, for making cars more affordable to his people Down1. San Francisco- is a place where a popular pharmaceutical Company was founded. Identify the Company. 2. Name the Brand associated with “Speedee Service System”

( Answers in the next issue) CluesAcross1._______ ____________ Has its Ad Campaign- “ Behave yourself, India, The youth are watching”

3. __________________ Claims to be rich in Vitamin D, and helps one’s body absorb calcium when sunshine is in short Supply. Identify this malt based drink. 4. __________________ had its Logo created in 1885. It was created by the company’s book keeper. It is one of the most simplest and recognizable logos in the world.

2. Which company had the successful ad campaign “Where do you want to go today? 3. _________________ is an eBay company, headquartered in Luxembourg (with several offices located throughout the world)--began in 2003, and was founded by Niklas Zennström and Janus Friis. 4. Which company holds the rights to manufacture the products under the brand name “Harry Potter after its success? 5. This brand was launched in the year 1956. It was known as “omo” in Brazil and “persil’ in UK and C

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