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MARCH 2011

- Monthly Newsletter

INSIDE THE ISSUE Page 2 NATIONAL BRANDING: - Is it all about encouraging tourism?





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NATIONAL BRANDING :- Is it all about encouraging tourism? - Srinath Akula

build reputation, encourage foreign direct investment, increase tourist arrival, create internal pride, or be a support for exports from the country. Antonio Marazza of Landor Associates, says “A country brand is more than just a logo. The purpose is to attract and win customers from around the world.” It is the way a country is perceived by the audience. “Incredible India”, “India Inclusive”, “India Shining”. What are these slogans ? What is the objective of these advertisement campaigns? Is it one and the same? No! The objective of these three slogans is completely different. ‘Incredible India’ is the slogan being used by Ministry of Tourism to promote India as a destination for travellers. ‘India Inclusive’ was the campaign by Confederation of Indian Industry (CII) during 2011 annual meeting of World Economic Forum at Davos, Switzerland. These two slogans are part of ‘Nation Branding’ of India. The third slogan ‘India Shining’ though started with the objective of promoting India interna-

The major emphasis is given to improve the nation’s image internationally, but equally important is to target nation’s own people. This is because, a nation is not just the land outlined by its borders, but also through its individuals. You can understand by this why government spends in broadcasting ‘Incredible India’ even inside the country. Advertisements which show scenic ads and tourist destinations in the country are mostly travel oriented. Advertisements like ‘India Inclusive’ are targeted at companies and governments who can be the potential investors or customers of India Inc. Let’s focus our attention on this branding for some time.

tionally, had been used as a political campaign by

Have you ever heard of IBEF? Can you recognize after

Bharatiya Janata Party (BJP). This received wide

looking at the image, if you couldn’t earlier.

spread criticism for using taxpayer’s money for promoting political gain. 'Branding' is how an organization communicates, differentiates and symbolizes itself or its products to its prospects. ‘Nation branding’ is doing the same, but to a whole country. Remember your first week of classes in Planet-I? From Kotler: What is marketed? Goods, Services, Places, blah blah blah.. Nation branding comes under marketing ‘places’. The objective of nation branding is multi-pronged; to

I’m sure some of you might have referred to the reports published by IBEF about the status of different industries in India, while preparing for Industrial Awareness sessions during second term or while preparing Strategy report a couple of days back.

DO YOU KNOW the origin of company name “PEPSI” ? It once claimed to contain pepsin. Pepsi's creator, Caleb Bradham, claimed his cola contained pepsin, an enzyme crucial to digestion, so Pepsi allegedly aided digestion.


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IBEF is a public-private partnership

arena, many countries across the world

arena for nation branding. Jay Wang

between the Ministry of Commerce,

do nation branding. To cite a few;

from LA says “You can find out how

Government of India, and the Confed-

'Korea Sparkling,' 'Definitely Dubai,'

countries want to portray themselves

eration of Indian Industry (CII). The primary objective of the trust is to

to the rest of the world. In other words, how they brand themselves. It’s like an



(expensive) beauty contest for na-

awareness of the Made in India label in

tions”. Expo 2010 organized in Shang-

markets overseas and to facilitate the

hai, China is one such event. 192 coun-

dissemination of knowledge of Indian products and services.

tries registered to participate and around 73 million visitors visited the



expo. Many countries had exclusive This trust prepares and publishes re-

National pavilions, showing their cul-

ports on the status of Indian industries,

ture and development of urban life.

promotes the brand of India Inc, publishes newsletters like India Now, In-

The government supports us in the

vest Now, conducts national and inter-

international arena by promoting the

national events to promote ‘Brand In-

nation as a brand and presenting a


positive image of the Industrial face of the country.

To name a few, it organizes ‘Made in India’ show, runs different campaigns

To better understand this, I'd recom-

like ‘India Everywhere’, ‘India Inclusive’

'Amazing Thailand', 'Malaysia, Truly

mend you to see the short films com-

every year across the globe .

Asia', and ‘YourSingapore’. And un-

piled by IBEF at

doubtedly world expo is a wonderful


Zooming out to the international

THE ECONOMICS OF MARKETING FRESH FRUIT JUICE IN INDIA -Kiran Krishnan “Uncle Ji, Ek Tropicana Litchi dijiye..!” For every visit up the hillock and down,

costing as high as 18Rs? For a conservative middle class

one tetra-pack of Tropicana/Real or

south Indian who was familiar

Saint..!! That is the thumb rule being

only with “Naranga Vellam

followed by many of us here in Planet-I.

and Sarbath” (read Nimbu

In the last edition, we talked how Planet -I and India as a whole is noodling too

Pani) and occasional road side sugar cane juice/mosambi juice, 18 Rs

much. I feel that another tectonic shift

was way too costly. I remember during

in our food consumption pattern has been characterized by an increased off-

my office days in Bangalore, Pune and Chennai, I could clearly see the visible

take of fruit juices. Yes, the beautifully tetra-packed Apple, Grape, Mango, Or-

difference in juice consumption pattern of my peers (no, I am not referring to

ange flavored so called “fresh fruit juices” marketed by the FMCG behe-

the “hot” consumption) where most of us started stocking family packs of


Tropicana, Real etc. That was sup-

Initially I used to feel why on earth is a juice packed in a meagre 200 ml pack

posed to be the “IN” thing. Also, most of us were being health conscious as

well with the added advantage of mixing it with Vodka whenever required J Yeah, Smirnoff with Tropicana orange totally rocks..! Coming to the point, as per a study by McKinsey & Company, the Indian food market is poised to grow to $ 310 billion by 2015 and $ 344 billion in 2025 – at an approximate compounded annual growth rate of 4.1 per cent. Currently, India ranks second in fruit production and


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third in vegetable production in the

banana make up 50% share. And con-

cisely why most of us still cherish the

world. Consumer taste & preference is

sequently India ends up importing

road side fruit wala’s fresh nimbu/

one of the major drivers for this indus-

most of the other fruit concentrates.

masala juice.

try. Increased health consciousness, high disposable incomes, changing

This exposes the manufacturers to the fluctuating commodity prices and the

More surprisingly, there are not enough technologies developed or ex-

demographics and lifestyle are driving

only way out is to stock up the concen-

ploited for exploring the feasibility of

demand for quality fruit products that

trate reserves which is also possible

bottling sugarcane juice/coconut water

can be consumed at ease.

only to a certain limit as it severely


This is evident from the huge rise in demand for ‘pulpy’ beverages as com-

cashes out your working capital. Another important cost driver is the pack-

Even though, Lemon flavoured juice drinks exploded onto the juices scene in 2010 with the launch of brands like Nimbooz by 7-Up (PepsiCo), Minute Maid Nimbu Fresh (Coca-Cola) and LMN (Parle Agro) accounting for 10% of off-trade value sales of juice drinks, bottled nimbu pani is a distant second favourite when compared to the mango market share which is quite surprising for the taste of Indian consumers. These fresh juices are not marketed as thirst quenchers but as health drinks.

pared to carbonated beverages, in the

However, with more serious efforts in technology up gradation, indigenous

last few years. The fruit-based beverages market in India is divided into

aging costs. For every 15 Rs 200 ml pack, the packaging costs sums around

three segments – fruit drinks, nectar

to 4Rs. But this cannot be given away

development of green and sustainable

and 100 per cent juice – and is getting

as safe packaging especially in hot/

packaging solutions, Indianising the

increasingly competitive. Parle Agro’s

humid conditions is very critical for the

Frooti, Coca- Cola’s Maaza and PepsiCo’s Slice are the three major brands

safe consumption. Transportation costs in covered trucks also add to the

in the fruit drinks space, which is the

logistics costs unlike other bottled

largest chunk of the fruit-based bever-

juices. Moreover, the retailers won’t

ages category. It is not a coincidence

keep the packs even for one extra day

that all of them are mango flavoured. In the nectar and 100 per cent juice

after the shelf life period. Another solu-

space, Dabur’s Real controls half the

re-filled and recycled. However this

flavours etc, these players might be

market, while Pepsi’s Tropicana has

requires extensive distribution network

able to bring down the overall cost to

over 30 per cent share.

which excepting Coke and Pepsi, no

the consumer and it would be only then that they would be able to further cash

But ironically, in this 2nd largest fruit growing country, hygienically packed

development of fruit concentrates,

tion would be to use bottles which can

others can exploit currently. The technology of fruit processing and

in on the Indian middle class explosive growth story.

fresh fruit juice is still a middle class

preserving the taste is only getting

luxury. India grows 70 million tonnes

continuously evolved and thus limits

Until then, let the roadside juice waala

fruit annually, of which mango and

the challenge to taste. And this is pre-



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CREATE YOUR UNIQUE SELLING PROPOSITION (USP) -Harish Kumar Raju The factor or consideration presented by

vates customers. Initially you can go beyond the known demographic pa-

a seller as the reason that one product

rameters of customers, such as age,

or service is different from and better than that of the competition.

gender, race, income and geographic location that most businesses collect to analyze their sales trends.

Brand Positioning is the process by which marketers try to create an image

3) Know your value. Uncover the real

or identity in the minds of their target market for its product, brand, or or-

time service. Neiman Marcus sells luxury, while Wal-Mart sells bargains.

reasons customers buy your product instead of a competitors.

ganization. It is about offering different from, and placing the idea more

Here's how to develop a Unique Selling

As your business grows, you'll be able

valuable than competitors in the minds

Proposition (USP) and use it to power

to ask your best source of information:

of customers. Hence it is imperative for

up product sales:

your customers. For example, the pizza

distinguishing offering from everybody else's.

entrepreneur could ask them why they 1) You are also a customer i.e., put yourself in your customer's shoes.

like his pizza over others, plus ask them to rate the importance of the

In order to pick out the product or service USP, requires some hard soul-

Remember, price is not the only reason

features he offers, such as taste, size, ingredients, atmosphere and service.

searching and creativity. One way to start for getting basics right is to ana-

customers buy. It is often learnt that entrepreneurs admire or fall in love

Many retailers routinely drop into their competitors' stores to see what and

lyze how other companies use their

with their product or service and forget

how they are selling.

USPs to their advantage. This requires careful analysis of other companies'

that it is the customer's needs, not their own, that they must satisfy. Put

Well, successful business ownership is

advertisement and marketing mes-

your focus on business daily operations

not about having a unique product or

sages. If it says about what they sell,

and also carefully scrutinize what cus-

service; it's about making your product

not just their product or service charac-

tomers really want.

stand out even in a market filled with

teristics, one can learn a great deal

similar items. Hope these give a start-

about how companies distinguish

2) Learning is important. Consumer

ing point for you to create a unique

themselves from competitors.

buying decision and what motivates their behavior has to be known.

selling proposition for your business. Whatever, one must choose the right

For example, Charles Revson, founder of Revlon , always used to say he sold

position, right path and execution. Effective marketing requires the owner

hope, not makeup. Some airlines sell

to be an amateur psychologist. One

For now, get your minds towards the

friendly service, while others sell on-

need to know what drives and moti-

ideas which will be your kismet.

DO YOU KNOW the origin of name “Apple Computers” ? It was the favorite fruit of founder Steve Jobs. He was three months late in filing a name for the business, and he threatened to call his company Apple Computers if the other colleagues didn’t suggest a better name by 5 O’clock.


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An unprecedented growth story:- THE BOTTLED WATER INDUSTRY IN INDIA -Shashank Kumar Verma purity & flaunting patent right the company has over the breakaway seal. The objective with the campaign was to highlight the tamper-proof seal & create doubt in the consumer’s mind of “Bottled water”, once deemed to be foreign to the Indian context & consid-

ter-in India, especially when the cost of material input (0.25 paisa per litre ex-

the purity of the other brands. That is, Bisleri is the only one that guarantees

ered as the luxury of the rich, is now

cluding labour cost) pales into insignifi-

100% purity and keeps you Safe.

one of the fastest growing markets in

cance before the price of the prod-

Since Aquafina, focussed exclusively on

India, with a CAGR of 25% (highest in

uct. Informal sources indicate that

youth Bislery came up with two vari-

the world) since 1999. As of now, the

gross profits of this industry can be as


packaged water market is approxi-

much as between 30- 205%.


mately equal to $445 mn. The per capita consumption of mineral

Marketing strategies of the major players:-

(“celebrate with the sweet taste of purity”) to focus specifically on the youth

water in India is 3-4-liter compared to

In this cut-throat completion among

(2) Bisleri Mountain Water( “natural

the global average of 25 litres. In com-

the market players, distribution has

mountain water”) to emphasize on the

parison to global standards India's bot-

become critical for this industry due to

purity aspect.

tled water segment is largely unregulated. According to a national-level

the high volume and low margin effort. Companies are offering retail margins

As it is said:- “A product that's not available where it's needed, is useless.”

study, there are more than 200 bottled

of 20 to 40 % against 8 to 10% on soft

water brands in India and among them nearly 80 per cent are local brands.

drinks. This is very important in case of this product because consumers would

The number of outlets where Bisleri is available have increased from 50,000 in

On close scrutiny, the above data reveals that this sector is far from being

take up what is available to them at ease and whatever retailer is giving.

stagnant; it’s going to get huge and will

Therefore promotional spends have become low.





growth opportunities to its players. Why






1995 to 2,00,00 PepsiCo’s Aquafina:Pepsi targeted the young generation and introduced Aquafina as a fancy

Market Share of top players in India 2010


Millions of people in India, suffer from inadequate or no tap water supply. The growing number of cases of water borne diseases, increasing water pollution, increasing urbanization and increasing scarcity of pure & safe water have led the consumers to the packaged water industry. Bottled water fills a void created by government’s failure to address the basic societal problems.

What is amazing is that people are prepared to pay Rs. 12 for a litre of wa-

Parle’s Bisleri

product to carry. Water, Pepsi claimed,

First real threat to the market leader, Bisleri was the arrival of PepsiCo’s

was no longer a simple beverage, but was something highly fashionable.

‘Aquafina’ and Coca Cola’s ‘Kinley’. In

They complimented it by giving their bottles an attractive look. This soon

response, it followed a differentiation marketing strategy. It started an advertisement campaign emphasizing on

caught the eye of the consumer. It’s being positioned as a premium product


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in imagery and packaging. The new

been to target institutions. This has

limited products and alternative home-

swirl shaped PET bottle resembles the

paid off well until now. It’s focus is

made products are some of the barri-

Pepsi family and is sturdier and more

primarily on perfecting its distribution

ers for the growth of this segment. Still

hip than most others in the category.


it’s probably the next big thing, going by the global scenario.

Coca Cola’s Kinley:-

The Way Ahead

Coca-Cola introduced its brand ‘Kinley’

Time has come for companies to in-

Meanwhile, the tussle to become the

as a health care product. Its ad-

dulge in brand building activity by

market leader has heated up with the

campaigns showed a doctor advising a

squeezing retailer and distributor mar-

explosive positive growth forecasts of

family to take Kinley for pure water

gins spend the money for advertising.

the industry, let’s see what’s in the

through its 'Boond Boond Mein Vish-

The flavoured water market is still at a

store for these “water players”.

was' commercial. Kinley’s strategy has

nascent stage in India. Higher price,

TEN STEPS TO REVITALIZE A BRAND -Kumar Vaibhav Brands follow a lifecycle which is very

brand is that it does not start giving

occasions on which the product finds

same as we human beings follow .They

result in a sudden so for managers who

its usage like on rakshabandhan or be-

are launched , then they grow like hu-

have quarterly or semi annual goals it is

ginning of month to start a month on

man beings , after some time they become mature and ultimately decline to

all the more difficult as they have to take a long term vision which is to

high note .Recently they launched Shubh Aaarambh campaign, as in In-

die some day.

backed up by a well thought-out strat-

dia there is a tradition to have some-

egy and its execution.

thing sweet before beginning some-

Many brands die somewhere in their growth stage while some die after crossing mature stage and many get

The revitalization of a brand needs a start by addressing the causes of the

revived and given a new life when they

decline, understanding the brand’s

are about to die . Significant invest-

promise (and why it may have failed to

ments used in making of brand get lost along with the brand are also lost. A

maintain its relevance), making required effort.

bitter truth is even the strongest brands which are leaders are much as

Let’s see the 10 ways to revive a

prone to decline as new products. In


today’s market, where new product launch is very risky and requires huge

1. Create new usage occasions. Cadbury’s campaigns are often tar-

2. Find customers outside your existing target groups.

investment so it is often not a bad idea

geted about finding new occasions to

Companies in US have revitalized the

to evaluate brands which are on decline

eat Cadbury chocolates.

orange juice industry from being only

and put an effort to revive them.

Kuch Meetha Ho jaye campaign told

on the breakfast table to a juice for all

Branding is a long term exercise. Most

the consumers that anytime they feel that they are happy and then they can

occasions. It’s also being touted as a healthy alternative since it has vitamin

brands take a long time to build, and a long time to die. Reviving a brand is

have Cadbury’s Dairy Milk to celebrate the occasion. It was followed by Pappu

C. With bulk of population in US being elders has broadened the product

also a long term exercise, typically lasting more than a year or two.

pass ho Gaya campaign which became

scope and has helped it make a comeback. John players also entered Female

Challenging part involved in reviving a

an instant hit and since then Cadbury has been attaching themselves with

thing good and pious.

apparels with their launch of Miss


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product’s unique feature, or Associate

3. Discover a new way of using the

your brand with music that carries cer-


t a i n

Paxil, Pfizer’s popular anti-depressant, is also approved and marketed as a treat-

Washing powder Nirma’s famous jingle is a still used after more than 20 years

ment for Social Anxiety Disorder

and it has created a unique brand im-

a s s o c i a t i o n s

age in minds of consumers. 4. Position your product as the one used by professionals and experts. The Colgate and other tooth pastes

7. Develop a new delivery vehicle or packaging convenience.

often associate themselves to some

Dabur repackaged its Real fruit juice;

dental association or some experts in

the company’s flagship product; as a

the field so that their credibility and trust in minds of consumers can be

natural, great tasting fruit juice for kids. They aligned the packaging, com-

Kodak came with its campaign to re-


munication and all elements of the marketing mix to communicate the

gan for family togetherness which was quite successful however the Brand

5. Associate a compelling story about

brand’s benefit (i.e., “REAL-tastes like

could not sustain the success due to its

your product’s origins. Every brand has a good story to tell.

eating a fruit”).

inability to responds quickly with grow-

Some may take a little digging to find

8. Create a character to personify your

it, especially at a bigger organization…

product, ingredient or Attribute or use

10. Attach with a cause to generate

but it’s worth the journey. Consumers

celebrity spokespeople.

appreciate it and brand gets benefitted from word of mouth and brand loyalty

Fido Dido, the famous 7UP character, was created and introduced on the

goodwill. One can get themselves attach with

that come from a profoundly human story.

market in 1987.Fido Dido compliments the core brand values of simple, clear

the society like many of the companies are already doing .Pepsi is associated

refreshment, by offering a simple and

with Water Conservation

6. Create a jingle that relates to your

9. Become the reason for family and friends’ togetherness.

vive its brand with Kodak moment slo-

ing digital technology.





any of the social causes prevalent in


DO YOU KNOW the origin of company name “Adobe” ? The name evolved from Adobe Creek in Los Altos, California, a river that ran behind the house of one of the company’s founders.

We want to hear what you think about this issue….. Please send us your comments\suggestions\feedback at Monthly Article Writing Competition, Cash Prize of Rs 500/- for the winner . If you have any query regarding the competition, please reach out to us at MercurI Team Harish Kumar Raju, Kiran Krishnan, Kumar Vaibhav, Nikhil Gupta, Shashank Verma, Srinath Akula

Mark-Avenue March 2011 Edition  

Mark-Avenue, the monthly newsletter from Mercur-I, the Marketing Club of IIM Indore

Mark-Avenue March 2011 Edition  

Mark-Avenue, the monthly newsletter from Mercur-I, the Marketing Club of IIM Indore