Mark Avenue September Edition by Kiran Krishnan

Mark Avenue A M ONTHLY M AGAZINE F ROM MERCUR i

SEPTEMBER 2011

iPhone 5

again..

Inside

‘The Chik Way’ Shopper Marketing The Game On?

Also

On-Air TVC Collection Mar‘Quiz’, Trivia, & Article Writing Competition

Mark Avenue Mercur-I Team Nikhil Gupta Kiran Krishnan Srinath Akula Harish Kumar Raju Shashank K Verma

Ankita Aggarwal Bhavna Sharma Buchalli Varun Deepak Sudhakar Patala Joy Daniel Preeti Gupta

EDITOR (Sep Edition)

Srinath Akula

COVER STORY

Srinath Akula

IN THE NEWS EMERGING TRENDS SUCCESS STORY MAR‘QUIZ’ FRESH ON TV

ARTICLE PERSPECTIVE DESIGNER

Bhavna Sharma Harish Kumar Raju Kiran K Krishnan Shashank K Verma

Srinath Akula Ankita Aggarwal Preeti Gupta Buchalli Varun Deepak Sudhakar Patala Joy Daniel Srinath Akula

The Team (from L to R): Deepak Sudhakar, Nikhil Gupta, Ankita Aggarwal, Srinath Akula, Bhavna Sharma, Harish Kumar Raju, Preeti Gupta, Kiran Krishnan, Patala Joy Daniel, Shashank Kumar Verma, Buchalli Varun

INSIDE 10 COVER STORY

Indianization: The new norm for global companies in India By Srinath Akula

08 SUCCESS STORY Marketing to Bottom of the Pyramid Consumers: The Chik way By Shashank Kumar Verma

15 EMERGING TRENDS

Shopper Marketing: Collaborating with Retailers ? By Kiran K Krishnan

17 FRESH ON TV

Compilation of ‗On Air‘ TVCs By Ankita Aggarwal, Preeti Gupta, Buchalli Varun

20 IN THE NEWS 20 IN THE NEWS

iPhone 5 (too) lost in bar A marketing stunt by Apple ?

FDI in Multi-brand Retailing in India By Harish Kumar Raju

By Bhavna Sharma

07 PERSPECTIVE

What‘s ‗in Store‘?

‗The Game on‘ for other sports ?

Emergence of Experience Stores

By Patala Joy Daniel

05 ARTICLE

By Deepak Sudhakar

19 MAR‗QUIZ‘

Marketing Quiz By Srinath Akula

24 TRIVIA

You don‘t want to miss these

From the Editor Dear Reader, This magazine marks the transition of Mark Avenue from an internal newsletter to a magazine. Mercur-I, the Marketing Club of IIM Indore, strives to bring the best-in-class articles for you which we hope you will definitely enjoy reading. The articles have been chosen to be contemporary, novel and relevant to the world we have built around ourselves in these B-Schools. You must be used to the names paneer pizza in Dominos, Maharaja chicken in McDonalds, Samsung Guru Mobile. But if you try to see through them once, is this Indian flavour to these products a tradition being followed long-since? If this is a recent phenomenon, what has made these Global companies paint their faces with tri-colour? Our cover story tries to answer these questions. Of late, companies seem to slowly shift their marketing focus from traditional media like TV, News paper to in-store where the customers‘ moment of truth is realized. Companies are concentrating on influencing the ‗impulse behaviour‘ of customers in-store and also giving an enriching experience through unique retail formats. This is in turn going to be amplified if government approves the 100% FDI in organized retail which is seeming to be very imminent. But amidst the fears of double dip, is this a welcoming phenomenon? Can you remember when did you watch the TV last time? We know! In the middle of such a hectic schedule in B-Schools that is a rare phenomenon. That‘s why we brought a collection of the latest TVCs which are currently being aired. And the world‘s best marketing machine came up with a shocking news. Is it just a stunt? Check out the article on Apple iPhone 5 to understand the same. Lastly, though there is lot of hue and cry about BOP, there are not many successful stories which changed the way we look at this segment. One of those has been explained in ‗The Chik way‘. Happy Reading. 

What’s ‘in Store’? Emergence of Experience Stores by Deepak Sudhakar

he organized retail real estate stock in India is expected to grow from the existing 41 million sq ft to 95 million sq ft between 2010 and 2012. Moreover, during 2010-12 around 55 million sq ft of retail space will be available in metropolitan cities like Mumbai, Bangalore, Kolkata, Chennai, Hyderabad and Pune. While organized retail accounts for only 8 per cent of the overall retail industry, experts believe that 2 per cent of the unorganized segment will migrate to the organized segment every year. This kind of growth provides a great opportunity for brands which are looking for novel ways to keep their customers engaged and spending. From auto brands, apparel makers to electronic majors, Indian retailers across the country are trying hard to create outlets where people can linger, learn and experience the brand. Brands have realized that retail design goes beyond just interior design. Rather it requires strategic implementation to ensure the store reflects the core values of the brand. A good design needs careful study of the consumer psychology and demographics which are not only born out of market research but rather by simply studying the target audience carefully.

Pudong, China

In fact, one of the main contributing factors for Apple‘s success is its chain of brick-and-mortar retail stores. Apple now derives 20 percent of its revenue from its physical stores and the number is growing. As other electronics makers like Dell, SEPTEMBER 2011

Nokia and Sony still struggle to find the right retail formula, Apple seems to have perfected it. With their airy interiors and attractive lighting, Apple's stores project a carefree and casual atmosphere. The maple veneer tables used for product displays projects an aesthetic intangible

feel. But the secret formula for Apple‘s increase in sales is the personal attention paid to customers by the sales staff. The sales staff has been trained to "Approach customers with a personalized warm welcome," "Probe politely to understand all the customer's needs," "Present a solution for the customer to take home today," and "Listen for and resolve any issues or concerns". Many retailers strive for good customer service and attractive store designs, but few go to Apple's lengths in orchestrating every detail. Slowly but surely Indian retailers have also joined the band wagon to improve the customer experience. In 2006, Bajaj Auto opened its first Probiking store to retail premium bikes. Careful observation of customers concluded that it is difficult to experience the real thrill of the bike in busy areas where the Probiking showrooms were located. Hence, the company simulated the experience with the help of a device, the dynamometer, which allows bikers to enjoy a life-like test drive. Right next to the dynamometer,

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Two years ago, paint company Asian Paints unveiled a unique format, Colour store, to reinforce the company‘s leadership in decorative paints. The store was designed to showcase the brand‘s latest product innovations instead of serving as a point of

Similarly Nokia also has retail format to give a world class experience to its consumers which are called ‗Nokia Concept Store‘. There are a total of nine Nokia Concept Stores designed in the global formats across the country in various cities including Bangalore, Hyderabad and Mumbai. According to the company, the aim is to provide customers a complete experiential mobile experience. The layout and design of the store follows the same pattern as Nokia Concept Stores around the world to guarantee an easy and informative shopping experience. Similarly many other global firms like Dell, SONY Ericsson, Philips, LG, Haier have exclusive experience stores.

retail. The larger objective of this retail exercise was to change the dynamics of the way paint is retailed in India. Instead of handing over the job of paint buying to masons and building contractors, Asian Paints wanted the end consumers to get involved. Following the popularity of the store, Asian Paints‘ has opened its second Colour store in Delhi.

Italian automaker Fiat is planning to open a lounge-like cafe to increase its dwindling sales in India. With its first two cafes in Pune and Delhi set to resemble an entertainment hub complete with food bar, an area for film screening, theatre and artwork, the company hopes to draw more customers and change the perception of Fiat cars in India.

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Although, retail brands in India are nowhere close to their international counterparts when it comes to engaging prospects, they are making laudable efforts to improve the overall consumer shopping experience. While a conducive retail environment is imperative, special care should be taken to make sure that consumer service is not neglected. An enjoyable retail environment coupled with efficient customer service which reflects the brand objective, provides the perfect shopping experience for the consumer. The author is a PGP1 participant at IIM Indore. You can reach him at p11deepaks@iimidr.ac.in MARK AVENUE

‘The Game on’ for other sports ? by Patala Joy Daniel Is it the right time for sports marketing in India to expand? Are companies willing to use noncricketers as brand ambassadors? Let us look at what opportunities are available and how marketers can use them with focus on recent happenings.

has grown in Indian youth. Previously it had signed up a 5 year multi-million dollar deal with Manchester United to provide exclusive content about the club for its users. It has also invested money to develop sporting facilities for football in India.

Sports have always had a close relationship with marketing all over the world. Sports stars have been used as brand ambassadors for several products irrespective of the type of the product. In fact a large percentage of income for these stars comes from brand endorsements. At the same time, sport which these stars represent also gets promoted. But sports stars have a fluctuating fan following, that is to say people love them when they deliver and abandon them when they fail. Hence choosing a sports star especially an emerging talent to endorse ones brand requires great deal of risk.

Lionel Messi‘s recent visit to India for the international friendly between Argentina and Venezuela grabbed the attention not just for the game but also for the big brands associated with it. The match had attracted some of the top brands of the country which include HUL, Bharti Airtel, Maruti Suzuki, Cadbury, Adidas, PepsiCo and Seagram. About 8 crore got generated just from ticket sales which is more than three times the average earning of each Kolkatta Knight Riders IPL outing. As per ESPN STAR, viewership for last year‘s FIFA World Cup has seen a 59% rise as compared to the earlier edition. This is a clear indication for increasing following for sports other than cricket. But the only thing which is stopping marketers to invest could be lack of local talent.

Since long, sport in India has mostly been restricted to Cricket. It is only in the recent times that one sees certain other sports gaining spotlight primarily because of few sportspersons excelling in them. Few marketers have looked at this as an opportunity and have signed these maverick sportspersons as their brand ambassadors. This has paid off quite well for a few of them especially in the case of Saina Nehwal or Vijender Singh. Also corporate have projected this as a CSR activity aimed at supporting these budding talents thus encouraging others to follow them. But the fact that these sport stars lack the outreach that the cricketers enjoy has hindered further developments. None the less the opportunity is definitely there. Few of the big brands of the country have been promoting sports other than cricket. Bharti Airtel is one such brand which believes that the interest for international sport SEPTEMBER 2011

The same can be said about the inaugural Formula 1 Indian grand prix being held at Greater Noida from 28 to 30 October this year. Several big companies have already showed their interest in supporting the sport in India and have volunteered to be associated with the race. Bharti Airtel has signed up to be the main sponsor. The author is a PGP1 participant at IIM Indore. You can reach him at p11patalaj@iimidr.ac.in

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Success Story Marketing to Bottom of the Pyramid Consumers: The Chik way by Shashank Kumar Verma

here would be many of us that have never used it but heard a lot about it. What is so great about this brand, that is an inspiration even to the global leaders. To the rural and semi urban population of India, it is the preferred daily shampoo. To the market and its players, the second largest selling shampoo in the country (after Clinic Plus). And to us, a case study in competitive strategy, a classic case to estimate the power of the customer base technically referred to as the ―Bottom of Pyramid‖. In 1983, when CavinKare decided to launch its first product - Chik shampoo, the shampoo market had over 200 players with HLL being the market leader with its Clinic Plus brand, which was positioned as a health shampoo. In this highly competitive market that seemed impenetrable to most marketers, Chik Shampoo identified an opportunity in rural and semi urban India and created waves with its entry into these markets. Combining innovative sachet packing, strategic pricing (at Re.1 & Re. 0.50) and a strong and motivated distribution network, Chik Shampoo transformed the very nature of shampoo packaging and usage.

for chik was one of its kind marketing strategy in India. They exchanged five empty sachets of any shampoo for a new Chik Shampoo sachet. Later, this scheme was altered -- to giving one free Chik Shampoo sachet in lieu of five empty Chik Shampoo sachets only. Soon, consumers started asking for Chik sachets only. The sales went up from Rs 35,000 to Rs 12 lakh (Rs 1.2 million) a month. Its market share increased and in 1992, it became the market leader in South India. CavinKare then went further to explore the rural markets in India where only 8% penetration of shampoo was there, here people hardly used shampoo. So the second strategy was showing the rural consumers how to use the product For instance they did live demonstration on a young boy and asked those assembled to feel and smell his hair. Thirdly, CavinKare sponsored shows of Rajniknath's films where Chik‘s advertisements were showed in between, followed by live demonstrations. Free sachets were also distributed among the audience after these shows. This worked wonders in rural Tamil Nadu and Andhra Pradesh. After every show, Chik sales went up to three times.

Here are five Innovative Marketing Strategies that made Chik what it is today Firstly, the introductory scheme of Cavinkare

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Still, in the rural areas the usage of shampoos was very low because of price constraints. At that time Chik was selling at Re.1 per sachet. CavinKare reasoned:- Rural families usually have 5-6 members which costs Rs 2 per week for person a total of Rs.12 a week that would be Rs. 50 per month which was very high for a rural family in 1980‘s. Looking at this scenario CavinKare decided to make a 50 paise sachet at

half the volume of Re.1 sachet but delivering equivalent value. This can be said as the fourth important strategy the company followed. For this, they removed excess water and made it concentrate so that it can deliver same results as a Re.1 sachet, which was improved to deliver more conditioning and fragrance. As it is said,‖ In any FMCG product the first attraction for the customer is its smell‖, French perfume was used for fragrance. It was a calculated risk since the existing volumes of Re. 1 shampoo sachets was also in the market. There was a fear of cannibalization, but when sales started picking up for the 50 paise shampoo, the 1 Rupee Shampoo also picked up pace, once the consumer started making a habit of using Chik shampoo and CavinKare gained a good margin. The shampoo experience was offered at a price that delighted the specific target audience of lower middle

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classes (SEC C and SEC D) with monthly household incomes of Rs. 1500-2000. Lastly, an other opportunity identified by Cavinkare was the confusion of economy value consumers in choosing between shampoo sachets and shampoo bottles. 65-70% of the shampoo sold in India is through sachets and only 30% is through bottles. Sachet sells more due to the phenomenal value it offers to the consumer. CavinKare had to be innovative and economize on the cost of bottle, packaging and other things and came out with a 50 ml bottle of Chik for Rs.6 with 2ml more in the bottle when costs are compared with equivalent amount of sachets. This move resulted in huge sales and helped the growth of Chik from 5% market share to the current value of 21%. This revealed that the consumer would buy a product if he sees enough value for money, irrespective of he is a SECA,B or a BOP consumer.‖ As of now Chik shampoo commands a 21.12% market share (urban and rural). HUL‘s Clinic Plus is the No. 1 brand in the country‘s Rs 1,000crore shampoo market. Last 3 years have witnessed a a drop in Chik‘s market share, reason being the advent of the anti-dandruff shampoos which from 0% have taken over 25% of the market. Chik as of now hasn‘t been able to develop an anti-dandruff shampoo. Well we‘ll see how this miraculous brand which was among the pioneers to grab the opportunity at the BOP responds to this challenge and sustains its position in this cut-throat competition.

The author is a PGP2 participant at IIM Indore. You can reach him at p10shashankk@iimidr.ac.in

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Cover Story

Indianization The new norm for global companies in India by Srinath Akula But the service and the setting just look like the original McDonald!!‖ So, what has McDonalds done? Indianization! Now every other Global firm entering India is trying to Indianize itself or its products. But what do you think the reason Indianizing products was an issue few years back? It was never an issue says management gurus. The investment to customize the products for India is justified now because of the growing consumer base. Deloitte consulting quoted in a report that India will become the 5th largest consumer market in the world by 2020 from its current 12th position.

or a minute, let‘s think you are a US citizen who came to India for a short trip. You were extremely hungry and couldn‘t find any of your regular food chains like KFC, McDonalds, and Subway across the streets since morning. Suddenly like an oasis in the desert, you can faintly see the Golden Arch of McDonalds at the other end of the street. Immediately you barged into the outlet within the flash of a second, to have your favourite menu item Beefburger. To your surprise, the item is not there in the menu and you thought ―What the hell? I never saw a McDonald menu without Beefburger!!‖ But as you‘ll die of starving before you find another outlet where you can find your regular food, you browsed through the menu. McVeggie? McAlooTikki? Chicken Maharaja Mac? You thought ―Am I in a fake McDonald‘s Outlet?

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Earlier, the quality of Indian made products was so pathetic that Indians revered any foreign brand and imported products were the most-sought after commodities. But both the quality of Indian made products and the consumer mindset have changed considerably. In 1996, only 34% of those surveyed expressed confidence in Indian companies; in 2006, 56% did. Indians now realize that not all foreign goods are perfectly suited to their tastes and needs. Indian consumers are also becoming more aware of trends and advancements in technology and they‘re asking for similar or better sophistication. They have become discerning consumers who want products that are made in India and for Indians. This is not the case in just one or other category of products but

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everything including automobiles, household appliances and consumer electronics, mobile phones, foods, and apparel. ―The reasons can be multifarious‖ says the Dutch economist Marieke K. de Mooij, ―historical, climate, economic and cultural differences‖. But he says ―70% of the differences between countries with respect to product ownership and usage can be explained by culture‖.

Kellogg‘s decided to invest US $65 million into launching its number one brand, Corn Flakes.

Let‘s look at few examples in detail. Let‘s first look at few examples of food first as the cultural differences are not more apparent elsewhere than in food.

Kellogg’s Kellogg‘s cereals have been consumed around the globe more than any of its rivals. Sub-brands such as Corn Flakes, Frosties and Rice Krispies are the breakfast favourites of millions around the world. From its cereal products alone, it could command a 40% share in US ready-to-eat market in 1980s. In 1990s Kellogg‘s began to struggle as competition got tougher with its nearest rivals General Mills increasing the pressure with its Cheerios brand. In 1990s Kellogg‘s decided to enter India, the country with over 950 million inhabitants, 250 million of whom were middle class, and a completely untapped market potential. In 1994, three years after the barriers to

international trade had opened in India, SEPTEMBER 2011

But Kellogg‘s Indian journey had been disastrous. There might be multiple reasons for that, but two reasons seem to be the most predominant in its failure. Firstly, Indians have always preferred their milk hot. When the Kellogg‘s crispy flakes are mixed with hot milk, they turned out to be soggy thereby out rightly rejected by the consumers. What they didn't realize was that, for Indians who like to start the day with something hot -- cold milk on your cereal -- is a shock to the system. Kellogg‘s later had to modify their products to suit hot milk but the damage had been done. Secondly, the cost of a 500 gm package of Kellogg‘s was way higher than its traditional rivals, contrary to their position that Kellogg‘s brand was meant for the middle-class consumer. But the high price resulted in the consumers buying their products on one-off basis as a status rather than as a nutritionally rich breakfast. If you don‘t strike the right chord, whatever you do is a mere waste. Kellogg‘s attempts to ‗Indianize‘ its range had also been disastrous. Its Mazza-branded series of fusion cereals, with flavours such as mango, coconut and rose, failed to make a lasting impression.

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Cover Story McDonaldâ&#x20AC;&#x2122;s Some are smart enough to learn from the failures of the others and do it right the first time. McDonald's, the Worldâ&#x20AC;&#x2DC;s Largest Burger chain is one of that kind. A considerable proportion of Indians are vegetarian by choice or for religious reasons, and have strict taboos on the mingling of vegetarian and nonvegetarian foods in the same kitchen or on the same table. McDonald's understood that fact and worked on its first-in-the-world no-beef,

no-pork menu. Vegetarian products are prepared with dedicated equipment and utensils and, in some cases, by a separate workforce. All food is cooked in vegetable oil, and the mayonnaise and other sauces do not contain egg. The iconic all-beef Big Mac has been replaced by the mutton and chicken Maharaja Mac in India. "Physical separation of vegetarian and non-vegetarian products is maintained right from the farm to the customer.â&#x20AC;&#x2022;

illegally high amounts of MSG and frying its chicken in pork fat (India's 150 million Muslims don't eat pork). KFC also faced severe protests by People for Ethical Treatment of Animals (PETA). Keeping apart the controversies, the taste of chicken wings and wraps it offered were too alien for Indian chicken lovers. In just a few years, Yum closed all its KFC restaurants in India, and did not relaunch the brand until 2004. This time, it introduced a vegetarian menu that included rice meals, wraps and side dishes -- the most extensive meat-free menu across the chain's worldwide operations -- and, like McDonald's, stuck to eggless mayonnaise and sauces. Even its trademark chicken dishes were given a local flavor with the use of Indian spices and cooking techniques. "KFC's strength is our brand-standard products," says Unnat Varma, marketing director of KFC India. "We work around that core and give consumers products with familiar tastes." The company's new, balanced strategy appears to be working: In four years, KFC has increased its presence in India to 34 outlets and currently it has 120 outlets across India. "The vegetarian offerings have made the brand more relevant to a larger section of consumers," says Varma, "and that is necessary for KFC's growth."

KFC Even with so many examples around, some learn it the hard way. Yum Restaurants India opened the first Kentucky Fried Chicken (KFC) outlet in Bangalore in the mid-1990s. It had been in the midst of controversies from the very beginning. KFC was accused of using

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Nokia Nokia also recognized the growing importance of rural customers in the Indian mobile telephone market which grew from a mere 3,00,000 subscribers in 1996 to a whopping 55 million subscribers in 2004. Nokia introduced its dustresistant keypad, anti-slip grip and an inbuilt flash light. These features, albeit small, appealed to a specific target of truck drivers initially and then

to a broader segment of rural consumers. These features endeared Nokia to the Indian consumer as Nokia displayed a genuine commitment in responding to local customer needs. The company launched two models, 1100 and 1108, after intensive research on the Indian customer's specific needs. It launched a campaign ‗Made in India‘ to communicate the same to the Indian customers.

MTV MTV was introduced in India in 1991 as MTV Asia, carried by Star TV; in 1994, it broke from Star, launching out alone as MTV India. When MTV had first come in, it simply tried to relocate Western MTV product (e.g., Western pop music) in India. This programming was ―not convincing‖ to the Indian viewer and moreover, it was seen as cultural invasion. The group wanting Western music was very small in number – like the Bombay elite type of crowd. The graphics were thought to be too numerous and too fast. There was irreverence, a rebellious quality to the channel that was perceived as too Western. SEPTEMBER 2011

Besides the choice of music, MTV‘s wholly English-language programming presented an obstacle. Practical matters aside (i.e., that more people speak Hindi than English), on a symbolic level, people felt disrespect over MTV‘s choice of language. In 1995, MTV was forced to go off the air to reconsider its strategies, including conducting market research. At this stage, it was on the brink of closing down altogether in India. During this time, a crucial event occurred. Channel V, a strong competitor to MTV for the music video market, hired Ruby Bhatia, an Indian VJ from Canada, who had been Miss India-Canada. Bhatia went on air speaking Hinglish, a mixture of Hindi and English, to introduce Hindi music clips from Bollywood films. She came across as ―very Indian‖ to viewers, and Channel V became an instant success. Channel V had discovered the key to the successful VJ: good looks, hipness, and the ability to break into Hindi when cracking a joke. People literally began to leave work early to catch her show. This event was taken to demonstrate that the success of music television lies in going local. MTV realized it had to Indianize to stay alive. Channel V had become by far the favourite during this time, but MTV proved extremely agile at indigenizing to India. As well, MTV (through its owner Viacom) had the budget for production Value (from glossy promotional ads and glitzy graphics to expensive clothing for its VJs).

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Cover Story But beyond the fact of its greater capital, MTV‘s rise to the top of the market was dependent on the deftness with which it localized its product. Cyrus Oshidar, a newly returned Non-Resident Indian (NRI), was brought in as creative director, responsible for ―creating the brand‖—or what MTV stands for. MTV India Indianized its programming by adding large elements of programming that include what is call Indi-pop—a whole new genre of music. This can be described as the audience forcing MTV to indigenize in a stunning display of cultural nationalism. The music videos in this genre have a distinct fusion flavor to them: Indian accents, lyrics, and music with Western beats and visuals.

The three words at that time were ―Indianize, humanize, and humorize‖. The creative direction changed completely, and overnight, MTV staff flipped the whole channel around. MTV India became the third or fourth most popular MTV in the world.

Tupperware Tupperware, a leading brand in the kitchenware market globally, started its operations in India in 1996 and since then it has consistently grown at a CAGR of 30%. Superbrands rated it amongst India‘s top 3 brands across all its categories and segments. Though its success can be dominantly attributed to what are called ‗Tupperware Parties‘, the way it adopted itself to Indian conditions gave further buoyancy to the brand. SEPTEMBER 2011

Tupperware started in India with few products selected from its existing international portfolio and had begun modifying products to appeal to Indian consumers. Soon after, the Co began designing products specifically for the Indian market. The spice box is a classic example. Using existing modular containers, Tupperware created an ergonomically sound, rectangular spice box. It was a neat, spacesaving design -- but it bombed. The traditional spice box in India is made of metal and is round, with round containers inside. Feedback from the sales force revealed that consumers would accept a plastic alternative, but not an altered shape. Tupperware now sells a round version designed and manufactured in India. Even the serving spoons in India are custommade, points out Anshu Bagai, head of marketing for Tupperware India. Tupperware hasn‘t just Indianized its products it changed the materials for Indian conditions as well. Typically, the company Manufactures containers in polypropylene, a cloudy plastic. Given Indian consumer preferences for opaque products, it has now upgraded its factory to manufacture polycarbonate, a clear plastic. "Every market is different, but we find customization has to be of a higher degree in India," Bagai says.

The author is a PGP2 participant at IIM Indore. You can reach him at p10srinatha@iimidr.ac.in MARK AVENUE

Shopper Marketing:

Collaborating with Retailers ? by Kiran K Krishnan

hoppers! How different are they from Consumers? If there is a difference, is that the raison d'être of Shopper Marketing? The answer for this question is an obvious Yes! With consumers, the focus of the brand is on consumption while with shoppers, the focus is on purchase! And the main objective of shopper marketing is to influence the shopper at the point of purchase in order to increase sales through variety of techniques. It aims benefiting the retailer, the marketer and the consumer. This concept was originated in the west by companies like P&G, Unilver & Coca Cola. The emergence and dependence of Modern Retail is believed to be the driving force resulting in new concepts like shopper marketing to influence shoppers in some of the largest markets like Walmarts, Carrefours, Tescos, Sears etc. Ever since, Shopper Marketing has been working for brands around the world to go beyond conventional merchandising and visibility creation to actually drive purchase.

Whether digital, e-commerce, m-commerce, traditional media, in-store or direct communications, shopper marketing encourages retailers and manufacturers to communicate more

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directly to consumers. It should therefore be noted that it is not limited to only in-store marketing activities but is a part of an overall integrated marketing approach that considers the opportunities to drive consumption and identifies the shopper. From an Indian perspective, Shopper marketing is ideal for: • Brands which have a high dependence on modern retail • Brand which dwell on ―shopping experience‖ as a the key driver of differentiation • New format retailers who are looking at expansion/re-launch of their store/ department/category etc • The various private labels which are looking at carving out more market share etc

Emerging Trends A recent survey by the Grey and G2‘s ‗Eye on Asia‘ report for bulk of Indian shoppers throws out highly interesting insights. It notes, • One-third of final purchase choices are made in-store, more so in hyper or super markets, claims recent. • Indians spend an average 36 minutes in supermarkets and about 20 minutes in provision stores. • It notes that 50% of consumers decide on the basis of what the information is provided at store level— promotions, demonstrations and advice. Various other reports also note that, Shoppers are increasingly making, changing or reinforcing their purchase decisions at the store. Worldwide studies by leading FMCG companies put this figure as high as 70%.

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Emerging In addition, the store is the second largest source of awareness, after Television, for information on brands and products. Not surprising then, that the store is the new ‗moment of truth‘ for brand marketers seeking to go beyond share-of-mind, to capture shareof-pocket.

Future of Shopping? Product catalogues for smart phones is already the new thing for big retailers and billions are being spent on providing a flawless user experience to shoppers. RFID technologies, Location based services, mobile payment gateways; social shopping will truly transform the way we look at shopping in India.

Facebook. Geo-marketing is also taking hold, allowing brands to target shoppers based on their geographic locations. E-commerce would be more of an Everywhere Commerce concept and Social buying would dominate the online buying space. Hence, in tomorrow‘s world, your mobile device would be your digital looking glass!

Where are Indian Companies? In India, the Modern Retail is still at the nascent stage but growing at strong double digits. Here, hanging around in malls is increasingly becoming a nation pastime.

Shopping for dresses would be so interactive that we can try on the various clothes on a virtual mirror and check out the best suiting ones by just a few swipes. Customization would gather more speed and would be the differentiating factor. In July 20, 2010, Coca-Cola India has appointed OgilvyAction, the activation arm of Ogilvy India for creating shopper marketing programs for the company‘s brand portfolio. OgilvyAction will work across all key channels where Coca-Cola India operates in the country. Cashless shopping would become an accepted norm. All we have to do would be just flashing our mobile phones in the counter and walk out. M-Commerce would be the ordinary mode of cash transfer. In 2010 brands really started to harness the power of social networks – but there is a still a lot to learn. In 2011 emerging technologies have started allowing users of social networks to buy products directly from sites like SEPTEMBER 2011

In February 2011, Saatchi announced that its global clients, who have a presence in India like Diageo, P&G, Pepsico and LG are expected to extend their shopper marketing business to the agency in India too. Madison Shopper Marketing (MASH) has already started its operations and is currently providing to services to clients like Britannia & Tata- AIG The author is a PGP2 participant at IIM Indore. You can reach him at p10kirank@iimidr.ac.in MARK AVENUE

Fresh on TV Anything for Jetta Story Line: A boy is born with wings. He uses his wings to his advantage in different situations which makes him into a celebrity until he spots the Jetta in a Volkswagen showroom. The film ends with him shown dropping his wings and driving off in the new Jetta. The tagline reads ‗The all new Jetta, you’ll do anything to drive it‘. Other Media: Print Campaign – On 29th August 2011, they wrapped TOI (Delhi, Mumbai, Pune & Bangalore), Hindu (Chennai) newspapers in Silver Jacket (false cover) endorsing Jetta. Social Media (twitter) - #anything4jetta http://www.anything4jetta.com/

Title Agency Date Duration

: VW Jetta 'Flyboy‘ : DDB India / Mudra Group : August 30, 2011 : 45 Seconds

The Best Ghana Cocoa

Title Agency Date Duration

: The Best Ghana Cocoa : Ogilvy & Mather India : August 30, 2011 : 45 Seconds

Story Line: TVC Opens with a shot of a SUV parked next to a small house in a village in which an international expert is seen evaluating a cocoa bean, as a group of farmers huddled before his table and look on, expectantly. The expert, who is scrutinizing each of the Ghanaian cocoa bean carefully, rejects one of them and keeps it aside. The rejected cocoa bean cries loud and expert asks the farmer chief to apologies to the bean. But a henchman whacks the bean off the table. The TVC ends with a voice over stating - "Only the best Ghanaian cocoa goes into a Bournville. Maybe that's why you have to earn it.‖

All New Pizza Hut Story Line: TVC begins with four friends dressed in early 30s era costumes arriving at Pizza Hut. One of those goes to park the car, asking the others to order his ‗usual‘. His friends enter Pizza Hut and are seated with the server asking them to try the new range. As they try the new food they morph from their black and white personas into their modern selves. The film ends with the fourth friend, still in 30s clothing, entering Pizza Hut but unable to recognise his transformed friends.

SEPTEMBER 2011

Title Agency Date Duration

: Pizzas and much more : JWT, Delhi : August 06, 2011 : 30 Seconds

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Fresh on TV Go Forth Story Line: TVC presents a montage of young people rioting for their rights as it aesthetically juxtaposes the more abstract expressions of ―your life is your life‖, words taken from ‗the laughing heart‘, a poem by the late Charles Bukowski. The message is that of hope and empowerment and calls out to the pioneers of this generation to seize the day and create positive change which underscores the theme ―Now Is Our Time.‖ The film closes with the Levi‘s brand‘s ultimate call to action: ‗Go Forth.’ The campaign has been launched in 19 languages (including Japanese, French, Spanish and German) and in 24 countries

Title Agency Date Duration

: Go Forth : Wieden+Kennedy : August 15, 2011 : 60 Seconds

The Corner Office

Title Agency Date Duration

Story Line: TVC shows a business executive at his corner office desk reading a report. Through the huge glass windows he notices the street outside – buildings, people, etc., moving past his office. Suddenly, his mobile phone rings and while he answers it, the camera moves out revealing that he is actually sitting in the all-new Audi A6. The executive gets off the car and walks into an office building thus showcasing ‗the corner office on the road‘ and ‗the best of business luxury‘ segment strategy of Audi.

: Audi A6 India launch : Creativeland Asia : August 09, 2011 : 45 Seconds

Har Ek Friend Zaroori Hota Hai This TVC can be aptly named the most popular ad released in the last month. The first piece of communication created by Taproot has created waves in the Industry. As soon as the Ad was launched it spread virally through social media, especially facebook. Story Line: TVC shows how each person has different kind of friends, and how the presence of each one is necessary in some way or the other. The film ends saying Airtel keeps one connected to all such friends. SEPTEMBER 2011

Title Agency Date Duration

: Har Ek Friend Zaroori Hota Hai : Taproot : August 15, 2011 : 90 Seconds

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Mar ‘Quiz’ 1. This Japanese Passenger Vehicle had the highest sales in the month it was withdrawn from the Indian market. This was the market leader in its segment.

6. From this TVC clip, identify the campaign and the brand

2. This consulting firm had renamed itself after parting from its parent firm. The company involved linguistic analysts from 47 countries and 200 languages, and legal experts from all the countries it was operating in for the process of name change. Also, in just one year it had achieved the same brand recall and brand equity. Name the firm.

7. Identify the following Logos (modified)

3. This world‘s second largest cosmetic

(a)

franchise never advertises itself in mass media. It relies only on word-of-mouth communication and is named as one of the most ethical companies in the world. Which is the company and which corporate group owns this?

(b)

(c)

4. Name the brand which released this Print Ad / TVC

(d)

8. This world‘s best brand in its category

5. This

brand was the first Brand Endorsement by Sachin Tendulkar. The global product was launched in India in 1978. This brand has even taken ‗Virender Sehwag‘ as its brand ambassador in 2003. SEPTEMBER 2011

launched an interactive campaign to promote its brand. It joined hands with the most innovative company and launched a product for the campaign in 2007. What are the two companies and what is the innovative product? Please verify your answers in the last page

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In The News iPhone 5 (too) lost in bar A marketing stunt by Apple ? by Bhavna Sharma

hink Apple, think Innovation, Inspiration, Individualism and not to mention Internet. One alphabet makes the world of a difference. Apple dominates categories where consumers can‘t think who comes in second. Mp3 players? You got iPods. Smart phones? Well duhh…. iPhone. Did I forget iPads? I am sure you didn‘t. So what is it about Apple that makes it carve a niche over everyone else? It‘s the mystery that Apple creates in the minds of us consumers that we are left pondering what comes in next? And Apple has mastered this art. I couldn‘t help but smile when I read in the news that the latest iPhone 5 prototype went missing in a bar. ―I guess I have to make my drinks a little less strong,‖ the bar owner was quoted as saying. Really? Who are they kidding? Since when does an employee strut off to next bar down the road with the ―next big thing‖ weighing heavy in his pocket? I just can‘t imagine him saying to the bartender, ―Hey man!! I’ll just be out of the restroom in 5, keep an eye on this….it’s nothing really, just iPhone 5‖. Sound familiar? Well it should! The same story came out last year only it was iPhone 4 back then. The incident was reported all over the internet and massively followed up with details that got more bizarre by the second. A certain Apple

SEPTEMBER 2011

engineer, Gray Powell, leaves an iPhone 4 prototype in a bar. Some random guy recognizes what he had and sells it to Gizmodo (a tech blog). The blog then reveals the phone to the world, posting photos and a massive teardown follows weeks before the official release. No charges were pressed against Gizmodo but for a good two days, Apple was all people could talk about. I smell a marketing stunt. A conspiracy theory floating around last year around the ―Apple weekend‖ (as many called it) was that Apple intentionally let go of one of its prototypes just to steal thunder from HTC, which got positive reviews for its Androidbased Incredible smart phone the week before. The initial goal may have been just to make people who were planning on buying a competitor‘s Smartphone wait for their new release. However, the timing of the stunt seemed a tad bit awkward considering it could have shifted the media focus away from the iPad, which seemed to be their marketing focus back then. Marketing gimmick or not, Apple has been making all the right moves. The kind of buzz created all over the internet, is something money can‘t buy. Can you think if any conventional sales promotion techniques that could generate footfall as large as this? The author is a PGP1 participant at IIM Indore. You can reach her at p11bhavnas@iimidr.ac.in MARK AVENUE

FDI in Multi-brand Retailing in India by Harish Kumar Raju

as the time come to for Indian Retail sector to open the flood gates for FDI in multi-brand retailing? With inflation and fears of double dip recession creating negative impact in Dalal street, can permitting Foreign Direct Investment (FDI) in multi-brand retail mitigate these fears? Lets analyze the impact due to FDI in multibrand retailing. In 2011, Retail is the largest industry contributing to 13% of countryâ&#x20AC;&#x2DC;s GDP and 6% of employment. The 18% of retail spending comes from top 8 cities whereas 73% of spending from rural areas. The Indian retailing business is worth around $420bn, in which organized retail contributes to only 5% of total. Doesnâ&#x20AC;&#x2DC;t it show an immense opportunity in India? That's why Wal-Mart & Carrefour are at the doorstep. As per current policy, 100% of FDI is open for cash and carry wholesale trading only. Hence Wal-Mart with Bharti and Carrefour with Future group are focusing on expanding wholesale stores so as to set up a strong operation base in India. The moment FDI opens door for multibrand retailing, they can leverage their back-end support for front-end retail operations. On the other hand, there are millions of retailers (Kirana / Pan-beedi shop) who depend on their lives on these unorganized retailing. So, we need to take this step with a pinch of salt. Let's have a look at the pros and cons of such a decision. The technological developments in areas of packaging, quality, and supply chain could be a the most direct consequence. Further, transportation facilities can get a boost, in the form of increased convenience in logistics which can help bring down wastage of goods. SEPTEMBER 2011

Giants like Wal-Mart collaborate with their vendors by helping them reduce costs. They would also provide remunerative prices to farmers and fair prices to consumers especially during the peak marketing season. In addition, it will help farmers gain access to global markets â&#x20AC;&#x201D; large corporations can source from India and sell abroad.

So, Real estate can get a further facelift in India and receive more investment with the opening up of FDI in multi-brand retail as they need substantial spaces.

Well there will be one main disadvantage of allowing FDI in multi brand retailing in India, rise of large corporate houses can affect small retailers to whom this is the only source of earning. According to the news dated 10th August 2011, the Commerce and Industry Minister Anand Sharma has stated that an early decision on opening up the sector for FDI would be taken after he formally gets the recommendations. The time has come where the government need to promote retail sector for the overall economic development and social welfare of the country. The author is a PGP2 participant at IIM Indore. You can reach him at p10harishr@iimidr.ac.in

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Trivia Optimist: Pessimist: Marketer:

―The glass is half full‖ ―The glass is half empty‖ ―Your glass needs resizing‖

Scandinavian vacuum manufacturer Electrolux raised a few eyebrows in the United States when it came up with the slogan ‗Nothing sucks like an Electrolux‘. It later reworked its strap line.

An old blind man was sitting on a busy street corner in the rush-hour begging for money. On a cardboard sign, next to an empty tin cup, he had written: 'Blind - Please help'. No-one was giving him any money. A young advertising writer walked past and saw the blind man and felt sad about him. The advertising writer took a thick marker-pen from her pocket, turned the cardboard sheet back-to-front, and re-wrote the sign, then went on her way. Immediately, people began putting money into the tin cup. After a while, when the cup was overflowing, the blind man asked a stranger to tell him what the sign now said. "It says," said the stranger, " 'It's a beautiful day. You can see it. I cannot.' ― Parker Pens alarmed its Mexican market with ads intended to read ‗It won‘t leak in your pocket and embarrass you‘ because, in fact, the ad stated ‗It won‘t leak in your pocket and impregnate you.‘ The company had managed to confuse ‗embarrass‘ with the Spanish verb ‗embrazar‘ or ‗to impregnate‘.

SEPTEMBER 2011

When American Airlines wanted to advertise its new leather first class seats in the Mexican market, it translated its "Fly In Leather" campaign literally, which meant "Fly Naked" (vuela en cuero) in Spanish! An old man, a boy and a donkey were going to town. The boy rode on the donkey and the old man walked. As they went along they passed some people who remarked it was a shame the old man was walking and the boy was riding. The man and boy thought maybe the critics were right, so they changed positions. Later, they passed some people that remarked, "What a shame, he makes that little boy walk." They then decided they both would walk! Soon they passed some more people who thought they were stupid to walk when they had a decent donkey to ride. So, they both rode the donkey. Now they passed some people that shamed them by saying how awful to put such a load on a poor donkey. The boy and man said they were probably right, so they decided to carry the donkey. As they crossed the bridge, they lost their grip on the animal and fell into the river and drowned. The moral of the story? In Marketing, you can’t please everyone. You’ve to choose the target segment. When Gerber started selling baby food in Africa, they used the same packaging as in the US, with the beautiful baby on the label. Later they learned that in Africa, companies routinely put pictures on the label of what's inside, since most people can't read English.

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SEPTEMBER 2011

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Mar ‘Quiz’ Answers 1. 2. 3. 4. 5. 6.

Toyota Qualis Accenture Consulting (Earlier Name: Andersen Consulting) The Body Shop, L‘Oreal JK Tyre Johnson & Johnson – Band-Aid Asian Paints – Har ghar kuch kehta hai

7. (a) Ten Sports (b) IRCTC (c) Bugatti (d) Maruti True Value 8. Nike, Apple, Nikeplus

500

each

The best two articles will win a cash prize of

competition

Indian Institute of Management Indore