K J SOMAIYA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH
VOL. IV | ISSUE III| AUG’ 13
BONUS FEATURE MARKETING FAUX PAS
HALL MARK CAMPAIGN
C OVER S TORY >> 18
BRICK & MORTAR MARKETING >> 12
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Cover Story – ‘Nostalgia Marketing’ Everyone has an undying desire to relive their yesteryear golden moments. How nostalgic do you get when you hear the 'hamara Bajaj campaign song' or picture Dhara's salivating jalebbi boy or a 'black or white' Michael Jackson song you played on your walkman or ‘The Uncle Chips cards’ you collected. Marketers today cleverly incorporate the union of the past and the present. Nostalgia marketing as a concept is when marketers revisit the golden moments of the past and use it as a leverage, to form a strategy to emotionally connect with the audience, which may induce them to make a purchase. - August 2012
Special Story- ‘The Curious case of Will I am and curiosity’ As interesting as it sounds the article is one of the best Marksman has produced. It reels off to the reader how innovative marketing can get. A novel marketing technique used by singer Will I am leveraging technology, is the central idea of this article. To satiate the curiosity generated by the title, the article is a must read. -September 2012
Brand Markive – ‘Apple Inc’ Way back in the 1970s when the world was still getting used to the idea of a computer, somewhere in a small garage in Los Altos, California, a revolution was about to begin! Two best friends, Steve Jobs and Steve Wozniak, college dropouts, sat in a garage and made something that would change the way people interacted with computers.
Cover Story- ‘Shotgun marketing’ Today’s marketing world requires newer and more specific strategies instead of the ones which can clearly be applied to all forms of businesses, whether the product is bread or armoured personnel carrier. This highlights the fact that more the marketing budget is, more diversified the marketing campaigns could be. However, how do smaller companies make an impact to grab a chunk of market share? Consider some marketing activities like flash mobs, a coffee shop using its limited budget to create awareness among the people nearby. These guerrilla marketing techniques are also called as Shotgun marketing techniques. - October 2012
Special Story – ‘Marketing Lessons from Obama’ The Special story talks about how Marketing emerges as an underdog along with Barak Obama where it was used effectively to reinstate people’s beliefs in him. It states further how this was the first political campaign to use social media for the official announcement of Barak Obama to re-run for president. It just doesn’t stop here, the article talks how each and every marketing sphere was exploited during this campaign from Ambush to email to Adaptive Marketing which eventually led to Barak Obama’s re-election. For those interested in personal branding or running a campaign, this one’s definitely worth a read. And for the rest, it any day a good read! - November 2012
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Featured Articles – ‘Gangam style-viral effect of the video’ Gangnam Style made for the local fans of Korea got its much acclaimed popularity when it was shared by stars like Katy Perry, Britney Spears and Tom Cruise. Top stars shared the video on their websites & many expressed desire to meet PSY. So PSY from being a rapper in South Korea became a common face in major celebrity shows of the world. Uniqueness about Gangnam style is that it is a free selling piece of pie. Anyone can adopt it & make his/her own version by restyling the song. - October 2012
Cover Story – ‘Stealth Marketing’ Marketing a product in such a way that people are not sentient that you are trying to cajole them to buy it. Stealth Marketing is marketing to the consumer‘s subconscious. It is ingraining in a consumer that he/she wants something, without overtly promoting the product. Stealth marketing uses insinuation and subtlety to seed a message in the consumers‘ mind. Stealth Marketing is also called Undercover Marketing, Buzz Marketing or Roach bailing by its detractors. It is an emissary of Guerrilla Marketing. All in all stealth marketing is a cogent marketing technique as long as it remains stealthy. But the consumer has to watch each step before making a buying decision because for all you know a friend or a family member may be a façade of a marketer. – December 2012
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Special Story – ‘Showdown in the Gaming Industry’ 2012’s statistics do not indicate a happy future for console gaming. Some games have been successful while many others have been flop shows. Why this observation is crucial is because during the past few years, video game sales have been plummeting consistently. By the end of the 3rd quarter in 2012, the drop in the sales of console video games was as low as three fourths of the previous year. During the same duration, mobile games industry has seen amazing growth. Market research and competitive analysis are vital. Mobile gaming does not generate revenues like console games do, but they have usurped a big share of console game market. With the development of mobile technology, the market can see a substantial shift towards mobile platform in the near future. – December 2012
Brand Markive - ‘ThinkGeek.com’ ThinkGeek in an online shop serving the needs of people who are passionate about technology. What do you buy there? Well, here goes! Their shop includes Chocolate Flavored envelopes with Note Cards, The Legend of Zelda Mints, Squirming Tentacle USB, Electronic Guitar T-Shirt(Which can actually be strummed!), Assassin Creed’s Tomahawk, Da Vinci Wood Catapult … and the list goes on. Special Story - ‘Word of Mouth Marketing’ The oldest and the most precious form of marketing for any company, Wordof-Mouth (WOM) marketing has grown to become an important part of the marketing plan of a brand. Since its inception in the form of Storytelling, WOM marketing has become more than just that. With the digital platform becoming the ‘next big thing’, consumers now have the power to voice their opinions about the brands that they use on various social networking websites, over the telephone, via emails and various other ways. Brands are becoming increasingly aware of this Empowered Consumer and have therefore become very cautious in every marketing move they make. One bad thing said about their brand in any part of the country could hamper their brand and affect their sales. - January 2013
Hall-Mark Campaign- ‘Bande Ache Hain’ It is an old saying- ‘After every successful man there is a hand of woman.’ True. But never a word said for men’s caring ways… it goes unstated. Men do have a caring, tender side to them, which hardly ever comes to one’s attention. ICICI Prudential has taken notice of this, with its latest campaign celebrating the "family man", it talks about the Good Men. The commercial stands apart from its earlier campaigns, which have essentially focused on ICICI Prudential's product features. - February 2013
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Cover Story – ‘One-to-One Marketing’ One-to-one marketing (sometimes expressed as 1:1 marketing) is the ability to customise the communication and offerings to each individual customer, on the basis of their stated or implied preferences. It is a customer relationship management (CRM) strategy emphasizing personalized interactions with customers. The personalization of interactions is thought to foster greater customer loyalty and better return on marketing investment.
Cover Story – ‘Affinity Marketing’ Affinity marketing is a marketing methodology that utilizes the available complements (preferably) to bolster sales of a service or product. This statement clearly indicates that this is not a marketing technique that we are unaware about. The name is suggestive and there is no red herring in it to make us try and think out of the box. The concept works is fairly simple. You pair up 2 complements/brands and then market them together. It is a symbiotic relationship that helps promote both the products with the promotional effort of one. - March 2013
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Special Story – ‘IPL- The Kurukshetra of brands’ This article draws a parallel between the mythological Mahabharata and the IPL and makes for an interesting reading. It enunciates how IPL exerts a pull on brands and is an indelible mark on their marketing calendar. But will it sustain the pull amid the botched image? - Summer 2013
Hall-Mark Campaign – ‘Connect with your roots’ This campaign talks about L’Oreal Paris, India’s leading beauty brand sending out an exceptional message with its new ‘Stay Rooted’ campaign. L’Oreal has created a special and brilliant campaign known as ‘Stay Rooted’ to launch its hair fall repair shampoo L’Oreal Paris Fall Repair 3 X’. Based on the philosophy that a person gets his strength from their roots, L’Oreal created a Film that features ordinary people from different walks of life reminiscing and thanking that one person who helps them connect with their roots! Cover Story – ‘Analytical Marketing’ Analytical marketing is employed by companies to track their consumer’s preference by maintaining data about their shopping history, their online activities, likes, comments, tweets, which sites they visit etc. They basically play ‘big bosses’ to all your activities. This data is then analyzed to reveal insights into how consumers interact with their company and for what reasons too. It allows businesses to make calculated and informed decisions. This data is used for analyzing further how to cater to individual customers effectively. - July 2013
EDITOR’S NOTE Dear Readers, At Marksman, we perceive August as a month of laziness and gloom. As the gloomy month comes to an end and the Newbie's at B-school have settled down and come to terms with the grind, we bring to you the anniversary issue of Marksman which is a pot purri of interesting articles right from the best of 2012 to the latest in the marketing world. Our cover story, “Brick and Mortar Marketing” talks about trading beyond bricked boundaries, trading online through various portals in the retail sector and in the banking sector. E - Retailing has formed the core of every business and hence, customers expect almost everything available on the shelves to be available on the internet too. Our anniversary special article, “Marketing Faux Pas” illustrates how a product and its campaign failed despite being in the “hall of fame”. Increase your marketing acumen as our anniversary issue unfurls the Tweets and Buzz. If you abide by ‘No one can eat just one’, our Brand Markive on Lay’s is meant just for you! Marksman would like to thank Prashant Singh Chauhan, Shikha Verma and Gargee Sharma for writing in to us and providing valuable articles in our Call for Articles Section. As we continue to write for you and provide a motley view of the marketing world, we hope you continue to enjoy our compilation much more than we did while compiling it for you. Do write to us with your valuable inputs and visit us at http://www.interfacesimsr.com/themarksman for more marketing updates and increase your acumen. Raising a Toast!! Team – Marksman The Interface, The Marketing Club at SIMSR @marksmansimsr
IT’S ALL ABOUT AD-ITUDE
COVER STORY BRICK & MORTAR MARKETING
A LEAP WITH MOBILE APPS
MARKETING FAUX PAS
EXCLUSIVE FEATURE KOTAK MAHINDRA BANK
C o n t e n t s
TWEETS TATA NANO ALLURES YOUTH WITH AN “AWESOME” CELEBRATION SONG Carmaker Tata Nano, has come up with an new peppy song which showcases a riot of colors and aims at the youth. Nano, earlier projected as the perfect family car to enable two wheeler owners to now afford a car has shifted their target line towards the youth and have allured them with an “awesome” peppy song namedCelebrate Awesomeness. They have mirrored Nano to have stylish interiors, amphitheatre Bluetooth music system and the have all perfect for the youth of today raging to own their car within their limited pocket money.
VODAFONE HIT BY THE CUPID ARROW Vodafone has made a paradigm shift from the super ZooZoos to including the romeo who goes out of his way to woo his love by faking the colour of his t shirt, praising himself and the likes which ultimately boils down to having a conversation that lasts all night and end with a good morning the next day! Vodafone characterizes by showing it is ‘THE NETWORK’ that stays with you all along.
TWEETS “THIS TO THAT” – COLORPLUS MAKEOVER PLAN Color Plus has launched a new makeover plan wherein they are not only retail stores but also complete apparel stores. Their sales people have evolved to designer and are equipped with the know-how of dressing styles.
They have also launched Color Plus Footwear and have broadened their purview to include new fabrics and offer their customers fabric touch in order to feel the fabric before ordering their apparel. All in all it is a welcome move to boost sales and cover up the lag they face owing to stringent competition.
XPRESSMONEY- “GHAR KAB AOGE” CAMPAIGN Xpress Money, a global money transfer company has launched a new campaign in 10 states of the country to emotionally connect with their users. The campaign allows home country residents to send postcards to family members living abroad free of charge and in return provides financial investment literacy along with tickets to the 5 best postcards chosen amongst all.
It is an excellent step to increase visibility as a little freebie will take them a long way in increasing revenues and allowing users to connect with the brand emotionally in turn inculcating a trust factor.
IT’S ALL ABOUT AD-ITUDE Outdoor Ad Advertising Agency: Leo Burnett Client: Rejoice
Tangled phone lines are a common sight on the streets of Bangkok, so P&G decided to take advantage of how they resembled long strands of tangled hair to promote P&G’s line of Rejoice conditioners, a large green comb was placed on the telephone lines, reading: “Tangles? Switch to Rejoice Conditioners.” This is a classic example of grabbing the attention of people. In the middle of the street such a big comb is sure to find a lot of curious new customers.
Print Ad Advertising Agency: JWT Dubai Client: Band Aid
The famous Marvel character and a band-aid are a mismatch. But here JWT has very interestingly used the figure to showcase the Band Aid’s quality of being flexible. Bruce banner , who transforms into hulk wears the band-aid and while transforming the clothes rip apart as the hulk has a huge body but the band-aid stays showing the flexibleness. The agency were successfully able to pass the message by this image
BRAND MARKive The Evolution of Frito-lays
ONCE UPON A TIME.. In 1932 , when C.E Doolin entered a small San Antinio Café, little did he know that he would love the corn chips so much so that he would go ahead and buy its recipe and sell Fritos© from his Model T ford. Meanwhile, that very year , in Nashville Herman W Lay started his potato chip business. He went on to buy Atlanta’s Barret Food Company and formed H.W Lay & Co. The two entrepreneurs continued to grow independently till 1961 . In 1961, the corn chips giant and potato chips giant joined hands to create Frito-Lay. PepsiCo was established with the merger of the Pepsi-Cola Company & Frito-Lay, Inc. in 1965.Today, Frito Lay has more than 30 brands under its umbrella. These include Lay’s potato chips, Cheetos, Doritos, Frito-Lay Dips, Quaker Snack Mix, etc. Frito-Lay company products currently accounts for nearly 60% of the U.S. snack chip industry.
LAYS IN INDIA.. PepsiCo's Lays was launched in India in the year 1995 and has since then steadily grown to establish itself as an indispensible part of India’s snacking culture. days.
The perfect amalgamation of International and Indian flavors , was an instant success. “Magic Masala” and “ World Classic Salted” flavors dominated the Indian Market during its initial "American Style Cream and Onion" and "Spanish Tomato tango" follow closely next on the list of favorites. The latest flavors , introduced earlier this year in India, are ‘Chile Lemon’ and ‘French Salt and Cracked Pepper’. Keeping up with the current promotional trends, these flavors were launched on the social media, creating a buzz even before the launch of the television commercial.
Also, in order to involve consumers in formulating new flavors, PepsiCo went a step ahead in terms of customer outreach programs, by launching the campaign-“Give us your Dillicious flavor”: an eight month long engagement program , where the winning flavor would bag a prize of Rs.50lakh and 1 percent of the sales turnover. The campaign was supported by a 360-degree marketing mix-radio, television commercials, outdoor, online, and print advertising.
BRAND MARKIVE In another such campaign, Lays India introduced a contest to name new flavors, and then invited the consumers to taste and vote for the best of them. The new flavors that are being produced now are Cheesy Mexicana, Mango Mastana, Hip Hop Honey and Chili, and Tangy Twist.
THE YOUTH QUOTIENT: Lays has strategically positioned itself as youth-centric by having Saif-Ali Khan and M.S Dhoni as its brand ambassadors. Lays was the official snacks partner for the ICC Cricket World Cup 2011. In order to create a better connect with the youth, Frito Lay India came up with an engaging campaign asking the consumers to choose their favorite flavors. They came up with six international flavors representing six different international cricket playing countries. The idea behind this was to give the global Indian the privilege of exciting tastes right here in India.
On 20th January, 2012 PepsiCo launched reduced-fat Lay’s baked crisps to target India’s young women. In order to live up to the product’s fun-lifestyle as well as healthy-snack image, it was launched at a fashion show by designer duo Shantanu-Nikhil. "Through this premium range of chips targeted at young women, we are offering a variety which has 50% less fat, and promises unrestrained fun and great taste," Vidur Vyas, marketing director for PepsiCo's Indian foods unit, said. EVOLUTION OF THE LAYS LOGO:
BRAND MARKIVE IT’S ALL ABOUT THE TAGLINE… Lay’s introduced itself with the tagline ‘No one can eat just one’. What’s interesting here is how the emphasis isn't on the taste of the product, because it might be possible that there will be other brands who taste as good. But what Lay's was able to emphasize on with their tagline is, that totally human, uncontrollable nature of snacking till the packet becomes empty. It later went on to replace this with various Hinglish taglines like " Har Program Ka Main Food". and "Be a little Dillogical". This year again, the brand has introduced the tagline- "Pal Banaye Magical " meaning " Making Moments Magical ". However, it is believed that none of these taglines comes anywhere close to the brand's original tagline and these frequent changes in the positioning does not favor the brand's overall strength.
THE FLIP-SIDE.. Although, Frito-Lays continues to remain the potato-chip giant, it has failed to please a considerable section of people. The major complaint from the consumer side is brand’s inability to provide value for money. The price has not been revised for a quite a long time now, but the quantity is ever decreasing-the packet contains more of air and countable number of chips. By the time you start enjoying it , you will see that your pack is empty. This in a way justifies their tagline as well… ‘No one can eat just one’…literally so! Also, another major issue raised against Frito Lays , in Pakistan was the mention of ingredient E361 in their packets. E361 in most cases is considered to be obtained from pig-fat and hence generated a lot of rage among the Pakistanis on religious grounds. However, Lay’s came out clean by proving the E631 used by Lay's Pakistan is derived from Tapioca starch, a plant based raw material that has been certified halal. Fun Fact:
“ You won't find Lay's Potato Chips in England unless you ask for Walkers, they are sold under that mark in the UK; In Ireland they are known as Chipsys; In Israel they're known as Tapochips and in Brazil, Elma Chips.”
EXCLUSIVE FEATURE KOTAK MAHINDRA BANK
A Good Workplace Builds More Than Just Your Career It’s true. A workplace not only defines you professionally but also moulds your overall personality to help you adapt and progress through various walks of life. But what makes a workplace good? Great workplaces are built through day-to-day relationships that employees experience and the organizational culture that reflects through the employees’ attitude. Employees believe the place they work in is great when they consistently trust the people they work for, have pride in what they do and enjoy the people they work with. Positive relationships and organizational culture & values are crucial to a great workplace. In a nutshell, a good workplace is where an individual learns and develops into a better professional and person. How does a good workplace affect you as a professional and an individual? Small things can make a huge impact. Imagine you step in through the door and you are welcomed on your first day by a warm and approachable management team. After an informative induction you start understanding the work better and realize there's a general sense of mutual respect and transparency in dealings. You get acquainted with your coworkers and eventually they become your friends while also maintaining a healthy competitive spirit. As you learn and grow in this environment, you start operating in an inclusive and participative environment where innovation and creativity is encouraged and opportunities to work with industry leaders are aplenty.
These relationships start making you feel more confident and you become one with your organizational culture, exuding a sense of ownership and self-reliance. Your personality automatically imbibes this culture and values and positively changes your attitude and outlook toward life. What's a good example? Organizations like Aon Hewitt have been conducting employer studies in India for several years now and they evaluate the alignment of the organization’s people practices with long term business goals and stakeholder value creation. Kotak Mahindra Bank has repeatedly featured in amongst Top 25 “Best Employers in India” since 2007. Kotak has also been evaluated to be amongst Top 25 “Best Places to Work” by the 'Great Places to Work’ Institute in partnership with The Economic Times (2008, 2009, and 2010). In 2011 Kotak Mahindra Bank has been evaluated as 10th Best “Top Companies for Leaders” in Asia Pacific in a study conducted by RBL Group and Fortune Magazine along with Aon Hewitt. The Endnote With an extremely enabling work environment and a unique set of organization culture and values, every individual at Kotak has an opportunity to learn and grow, be a leader and build a positive legacy. Watch this space to know more about this Kotak.
ANNIVERSARY2013 2013 ANNIVERSARY
MARKETING FAUX PAS COCA COLA VANILLA About ten years ago, in response to strong competitive moves, Coca-Cola began aggressively exploring flavored drinks. CocaCola was looking for new ways to sell and diversify a century-old product with formula spin-offs.
Vanilla Coke, Coke's first flavor extension in India, was touted as the greatest innovation since Diet Coke in 1983. Vanilla seemed to cross the generational gap the same way that Coca-Cola does. Analysts said such line extensions typically offer an easy method of enhancing sales. Vanilla Coke came with a bang in the Indian market in April 2004. It went without much noise in 2005. 2004 saw the wild scream " Wakaw" played across mass media. The 60-second ad was played on youth-centric channels like MTV, Channel [V], HBO and AXN and even regional channels like Sun TV. With a retro-Bollywood theme, the ad urged consumers to "try something new and different", in classic 1970s style. The brand had Vivek Oberoi , the then bollywood flame endorsing the brand. Vivek sported the retro look with typical combination of Elvis style + Shammi Kapoor style in an Old Lamby Scooter screaming Wakaw.
Vanilla Coke targeted urban teens and young adults (12 to 29 age group) in the high and middle income groups. It carried the tag line â€˜Ice Creamy Thandaâ€™. The product was different in taste, promotion, package, price etc. Vanilla Coke had been very successful in the international markets. The ads were surely clutter breaking and backed by 360 degree branding efforts that ensured good publicity. The creative done by the famed Prasoon Joshi was discussed in all media and that ensured truck loads of free publicity. The brand also got into viral marketing. The campaign along with Contenst2win asked the customers to SMS Wakaw to 8558 in order to win goodies. According to media reports, the campaign resulted in 440,000 SMS in just 4 weeks creating a record of sorts.
ANNIVERSARY 2013 THE MARKSMAN
MARKETING FAUX PAS But how did a product with such a good start fail so easily. Retailers reported slow sales of the product. Sales dropped rapidly in metros. Sales dropped from retailer average of 48 bottles/day to 24 in 3 months. In eight months, it was down to 4-5 bottles/day. Subsequently, The Company was forced to pull the Product out from the market within a span of 10 months. It is one of the most expensive advertising failures in Indian marketing history. The Factors responsible for failure were both internal and external.
Other Reasons which may have also caused the failure to the Product:1. The product may have been poor in quality. The Targeted Group may not have liked the taste. 2. The campaign was not targeted at the right segment. People of old age could easily relate themselves with old stars and the whole idea, whereas teenagers could not.
INTERNAL FACTORS Wrong positioning & mismatch of target group and communication Clutter-breaking TVC, but contradictory Targeting youth with a retro theme Lack of connect with slice-of-life Coke commercials Curiosity generated, but low support from the product Instant comparisons with original Coke ‘Kids’ product because of the flavor Taste similar to existing products like icecream floats Lack of distributor push Margins on VC lower at 25 ps. than Coke at 40 ps. EXTERNAL FACTORS Cola market slowing down Impact of pesticide and groundwater controversies Growth of the health drink and bottled water segment Competition from Pepsi and its other brands Low acceptance as a mixing agent with alcoholic beverages
The failure of Vanilla Coke is a classic case that proves that Marketing is not a perfect science. There is no formula or theory that can make a brand successful. Quoting Kotler " Marketing is easy to teach and understand but difficult to practice".
COVER STORY BRICK AND MORTAR MARKETING We will take a look into the vast marketing paradigm of the Retail sector where ecommerce has come in with a bang and created a huge e-retail market with an urban customer base who are tech savvy and shop on the internet. We will also look into the Banking sector where net banking has become a part and parcel of every bank and the customer expects to get this service with any bank they wish to associate with. Retail sector has seen a huge uplift since the government of India has eased up on the FDI norms. We have seen huge supermarkets and lifestyle stores come up where shoppers are seen flocking at the weekend to buy anything and everything they want. We have also seen websites like flipkart.com and snapdeal.com come up in the last six years which started by selling books and music, now have expanded their range to electronics, shoes and recently apparels. Banking is one area where physical presence is a necessity, while net banking has created an ease for the customer, banks need to have an infrastructure and they need to market this presence so that they can attract more and more customers. Bank marketing has become a very complex yet interesting subject as it requires the understanding and in depth knowledge of economics, sociology, psychology, banking and also core marketing concept.
RETAIL The retail industry in India has seen a phenomenal growth of 10.6% between 2010 and 2012 and expectations are that it will increase to USD 750-850 billion by 2015. The largest segment within the retail sector with 60 per cent share is Food and Grocery followed by Apparel and Mobile category. Here we discuss the marketing strategies of the largest category i.e. Food and grocery segment and one of the smaller categories Books, which takes up less than 3 per cent share. Majority of Indians depend on the mom-and-pop stores or are seen flocking the supermarkets on weekends for their monthly grocery shopping, there are increasing number of people in India who are getting comfortable with doing their grocery shopping on the internet. Sites like bigbasket.com and grocerywaala.com have started selling food items on the internet. Though this e-grocery industry accounts for only USD30mn of USD380bn F&G market-size, the industry is expected to grow because of the small market base and the growing number of players who are venturing in this industry.
Companies are now putting a lot of resources to promote their private labels in both grocery and non-grocery retailing because of the high margins (for example, approx. 25 per cent of total products for Spencer's are a part of their private label portfolio). Companies are also sourcing directly from producers to reduce price and increase margins (for example, Pantaloons’ retail subsidiary - Future Fresh Foods Limited sources directly from producers). The main lineament about F&G markets in India is that people like to take a feel of what they are buying. They need to hold the apple or measure the length of one rice pellet to know that, that’s their variety. The local Kirana stores will stay in business even after huge supermarkets have opened up because they offer the facility for credit. Supermarkets will keep on introducing reward systems and memberships and discounts to retain existing customers and to attract new ones. Next we look at the book segment of retail where booksellers are losing their business to e-sellers and closing shop in hoards. Digital books are taking the place of hardcovers very rapidly and while the publications are enjoying this new trend the booksellers aren’t. Amazon’s Kindle and many such devices have solidified their position in the market as digital e-book reading devices. Digital books are expected to outsell print titles by 2015 in Britain, says Sam Hancock, digital product manager at HarperCollins, and even sooner in America.
While in India this situation has not reached this level of maturity but it soon will. In India the bookstores have proactively started to increase their attractiveness so that they don’t have to face the same predicament as Borders a huge bookstore chain that sold its assets to Direct Brands a media distribution company. Indian bookstores believe that their unique features will make the customers keep coming back for the experience and the culture. These outlets have started providing an intellectually stimulating space that the online sellers cannot. Oxford Bookstore another chain with 30 stores in India, hires more than 200 people to promote such an experience. These people may be expert book sellers or informed hosts. These stores are now providing services like offering book delivery services within the city at no cost, ordering special books on request, and extending to music, toys, movies and other products helps these bookstores keep up with the changing times. These bookstores offer varieties in books like a section devoted to just children’s books and toys. Parents are seen there quite often to buy books for their kids. Such stores devote a lot of attention to maintaining their brand loyalty by introducing new features to attract customers.
BANK MARKETING Banking is one sector in which infrastructure is a necessity since banks need a front to deal with customer transactions. These days most of banks branches in metros and cities, have computerized front office operations (customer transaction) and their back office operation and information management system have also been computerized and integrated. Though, it should be noted that the traditional 'brick and mortar' banking with manual system wherein registers were used to store customer entries, does continue to prevail in most banks' rural branches in urban areas too, most of the urban co-operative banks continue to use the manual system of banking. Banking is done in two ways Real banking, in which branch bank is a retail location where a bank, or any other micro-finance institution offers a wide range of face-to-face service to its customers. Real banking provides a number of services such as notaries, loan officers and safety deposit boxes. There is Virtual banking wherein financial and banking services are accessed via Internet. It's called a Virtual Banking because a Virtual bank has no limitations of brick and mortar and exists only on the Internet. An effective Virtual banking reduces operational costs and facilitates the information that affects efficiency and effectiveness of the transaction. It has many benefits like accessibility, saving time, user friendly, anytime and anywhere banking facility, Secure, Convenience, useful, protect environment in comparison to Real Banking.
Bank marketing should consist both the aspects of the bank. A bank should promote both, its front office operation and net banking facility. It should focus on customer experience more than its net banking facility. The facility of internet banking is omnipresent and except a few features that differentiate a bank from its competitor it is there just to create a sense of ease for the customer. While this is an important part the banks need to differentiate themselves by the kind of service they offer in their branches, the customer support, the accessibility and the infrastructure that is provided by them. Letâ€™s take the example of ICICI bank, it is the largest private sector bank in India. It has 1900 branches in India and 33 in Mumbai. It promotes itself by Advertisements, Print Media, it does its sales promotion by offering gifts and incentives and by Telemarketing. It follows an employee dress code for its internal customers and offers writing pads, pens, cheque books and passbooks. Marketing in these sectors have become a challenge for the marketers. They need to adapt to these changing times and attract customers to both sides of the company, be it the internet banking or e-retailing and the physical branches and stores that serve the customers in their own unique way. The onus is on the stand-alone stores that donâ€™t have the resources to be present in the digital world. They need to differentiate themselves in such a way that they arenâ€™t left behind in this race.
SPECIAL STORY A leap with Mobile Apps
It can reach places where other media cannot, for instance there are more mobile phones globally than there are personal computers. A brand can optimally use mobiles to provide its customers with personalized information and promote goods, services and ideas. Phone Calls, SMS, browsing the internet, WhatsApp are not anymore the only ritual uses of a smart phone. It is the mobile applications that are rocking the smart phone world. Also better known as apps, they are now indispensable for marketing a brand. Through the mobile apps, brands are trying to build loyalty and service the customer’s requirements by being perpetually available on a medium that is close at hand. It also plays an integral role in managing customer relationships. Mobile app marketing forms only a fragment under the umbrella of mobile marketing.
Mobile Marketing Imagine information specific to your needs and environment comes to you at the blink of an eye. Mobile marketing is how it does. It is the latest addition to most brands’ marketing mix. Use of mobiles as a medium for marketing communication is what mobile marketing is about. Communication through wireless media is the advantage of marketing through a mobile.
Considering the current scenario, brands look forward to a low cost opportunity to connect personally through a device which is always at the customer’s disposal and can gain direct revenue opportunities from it. It consists of several verticals through which brands can communicate the desired message to its existing and potential consumers. Those verticals are: SMS Marketing MMS App Marketing In-game Mobile Marketing Mobile web Marketing QR codes Location based services Although, marketers have the opportunity to reach out to its users, they must not forget to be rooted strongly enough to convey the brand message effectively.
SPECIAL STORY Why apps? The largest customer base today is on the go customers. So, every brand needs to be on its toes to make sure it is exposed to its customers at their convenience. Two major factors that are driving this market are the rapid increase in purchase of smart phones, which use internet connectivity for web browsing, and the popularity of apps that are downloaded, especially the free ones. It has become increasingly prevalent across mobile phone users. Also, the effect of viral marketing through apps is very impactful on the customers. Another edge that apps as a marketing tool have is that they help reinforce a brand. Moreover, they are always visible on your phone’s home screen and it takes a very short while to launch an app. A brand can thus, very effectively to its advantage utilize an app by creating it in a fashion that best suits its consumer’s needs and satisfies them. Let’s have a look at some brands that have by far been successful in doing so. MakeMyTrip:
India’s biggest online travel agent, MakeMyTrip grabbed the opportunity of high rising availability of affordable handsets and low mobile tariffs of data network to create a free mobile app, MakeMyTrip. Through this app the users can search and book flights. Passenger details can be stored on the mobile to make any future bookings convenient. It also allows users to make cancellations, view booking details, get etickets and track refunds. All modes of payments for transactions are supported in this app. It earns brownie points by updating its consumers through alerts of their flight schedules. The app also offers its users exclusive personalized travel deals and gives them another platform to connect with friends by sharing their itineraries on Facebook and Twitter. The app has surpassed 1 million download mark as their strategy has hit off well mainly due to three reasons, the users are content with its simple and intuitive interface, the process of booking takes less than two minutes and most importantly the payments methods are wide and secure.
IMDb: IMDb, the online portal was launched in 1990 and acquired by Amazon in 1998. It attracts more than 160 million monthly unique visitors. The very popular online movie and TV show database, launched its mobile app a long while ago. However, it has recently gained momentum as they rolled out the new feature of buying tickets for specific shows at local theatres.
IMDb, the online portal was launched in 1990 and acquired by Amazon in 1998. It attracts more than 160 million monthly unique visitors. The very popular online movie and TV show database, launched its mobile app a long while ago.
However, it has recently gained momentum as they rolled out the new feature of buying tickets for specific shows at local theatres. IMDb allows its users to review, rate and read more about movies and TV shows. Apart from having the feature to book movie tickets, it also offers an option to add the release date of an upcoming film to your calendar. The app also includes IMDb Buzz, which gives the latest movie news and IMDb Trivia, which is a movie quiz. These are built for users to engage in fun activities while they browse through films or buy tickets.
VOLKSWAGEN’S SMILEDRIVE: The renowned German automobile brand has launched this app, which tracks your trip while you drive. It lets you tag other passengers in the car and share your journey online, making your friends at home feel like they are a part of it. It also helps you to keep track of your parked car through the Find My Car feature. Only available for Android phones, through this app Volkswagen tries to make your road trip worthwhile. HAAGEN-DAZS’ CONCERTO TIMER: iPhone users can check out the ice-cream brand, Haagen-Dazs’ new augmented reality app. When users launch the app, and point their camera at the lid of any Haagen-Dazs’ icecream, they will hear a "virtual violin concerto." This is for the consumers to enjoy the two minutes with some music while their ice-cream comes down to the ideal temperature for eating. The mobile eco-system is now well established. With the arrival of smart phones, and increasing advancement in technology, mobiles can be one of the most promising tools of marketing as consumers too are eagerly utilizing it and looking forward to more.
WHAT’S NEW IN THE APP WORLD?? Stepping outside India, some recently launched apps are likely to score well with the audience abroad.
Hall-MARK CAMPAIGN ‘COCA COLA- open happiness’ HAPPINESS WITHOUT BORDERS Soft drink giant Coca-Cola has come up with a unique online campaign aimed at promoting peace beyond borders. Coca-cola’s tagline - "Open Happiness" has been associated with disseminating 'happiness', and the new video advertisement aims to be an extension of it. As part of this campaign, Leo Burnett Sydney 'Coca-Cola Small World Machines . Bringing India & Pakistan Together', has set up innovative vending machines in Delhi and Lahore. The machines provide a live communication portal linking strangers through a 3D touch screen in two nations divided by more than just borders, with the hope of provoking a small moment of happiness and promoting cultural understanding around the world.
People on either side have been invited to ‘Make a friend in Pakistan’ (in New Delhi) and ‘Make a friend in India’, to share a Coca-Cola.
They are requested to complete a friendly task together like - wave, touch hands, draw a peace sign or dance, before the machine dispenses a can of CocaCola. The film features people engaged in the activity and their reactions. The advertisement propagates in the video a special message that states, "A moment of Happiness has the power to bring the world close together.” Coca Cola released the video on Twitter stating, "Happiness is realizing what connects us is stronger than what divides us."Crews filmed through the night, capturing more than 100 interactions between people of all ages and from all walks of life. None of the people featured in the film were actors, and their reactions were completely natural. Coca cola has captured a huge market share in India as well in the whole world. It is not just because of the refreshing taste it offers, but also because it connects to the emotional quotient of the consumers. Coca cola makes beverages but they sell something else. They sell an experience- they sell “smiles across miles”.
ANNIVERSARY 2013 THE MARKSMAN
REWIND Corporate Interaction with Mr. Prabhakar Tiwari Somaiya Institute of Management and Research has always been known to organize some of the best corporate interactions for its students. Keeping up with the tradition, the marketing club of SIMSR “The Interface” organized a brilliantly executed corporate interaction on 7 th August, 2013. The speaker on this occasion was Mr. Prabhakar Tiwari, the General Manager for Marketing at CEAT Tyres. Mr. Tiwari, an alumnus of IIM Bangalore, currently leads the Motorcycle and UV Radials segment business at Ceat Tyres. Having worked in leading MNC’s like Marico, Avon Beauty Products and Danone Dairy India, Mr. Tiwari has a rich experience in the field of Sales, Marketing & Brand Management.
The interaction kick-started with an overwhelming jam packed audience who were captivated and beguiled by the speaker’s immense knowledge on branding and his thought provoking ideologies.
The man behind some of the most successful brands in India, brainstormed with the students on concepts ranging from Brand Equity, Brand Insights, InterBranding to Brand Leadership. He skillfully blended his interaction with plethora of marketing experiences, ensuring that the audience left with a conceptual clarity on what marketing was all about. He exemplified on how advertisements had transformed over the years, by screening three lifebuoy TVCs that were telecasted in different times. This was followed by a rigorous brainstorming on the same. He also discussed the importance of color in branding. He concluded the interaction with very simple lines “Work Hard & Enjoy Life at times of both highs and lows”. All in all, Mr. Tiwari rendered in depth insights to the students who are looking out for marketing as a career.
ANNIVERSARY 2013 ANNIVERSARY 2013
INFLUENCE: The Psychology of Persuasion -Dr. Robert Cialdini INFLUENCE: THE PSYCHOLOGY OF PERSUASION is an exceptional book prolifically written by dr. robert cialdini, professor of psychology at Arizona State University. The author illustrates how marketers use the basic six principles to trick their consumer’s minds and evoke them to say “YES”. These six fundamental principles can essentially prove to be very powerful when employed in isolation or in combination. The first principle elucidates on the give and take philosophy. If somebody does something for you, you feel obligated to return back their favour in some way. This is termed as Reciprocation. The second principle of Commitment & Consistency talks about how people can go to extreme heights in order to uphold their commitment that they made on record. Under Social-Proof, which is the third principle, people tend to give testimonials to prove their credibility. The fourth principle features Liking. This can be all about building a good rapport with your customers which can make it easier for them to do business with you. Additionally, they wouldn’t mind shelling out those extra bucks for your service if you are high on their likeability scale. The fifth principle, Authority is all about getting influenced by somebody who has a better experience or degree over a layman. sA doctor will be legitimately viewed as a more reliable person than an ordinary man who might happen to possess a much better knowledge about medicine. The final principle is about creating a fear of Scarcity in the minds of the customer. This could be in terms of time or perhaps, even quantity. Marketers often come up with strategies that constantly indicate about how limited the stock is or a limited time offer. Such antics work well in invoking immediate action from their customers. Hands down, the book is extremely beneficial for both marketers and salespeople who can implement it in their jobs that require good negotiating and influencing skills.
FEATURED ARTICLES How Big Data Can Will Impact Sales And Marketing?
Prashant Singh Chauhan -SIMS Marketing and sales departments of a company continuously need to monitor where there customers are, where they are spending most of their time and what they come across in their daily lives. This enables them to effectively design their marketing and sales plans, strategies and budgets. This has led to vast amount of digital data being generated by the customers, offering insights for marketing campaign. Before the IT era marketers were targeting customers through traditional means of TV advertisements, newspapers, posters and hoardings. Now there’s a shift towards shopping, socializing, expressing views on online platform. Customers are spending more time online then they used to.
Now they consciously take care of every customer touch points as it is going to have a significant impact on sales. A report in 2012 by Gartner stated: “By 2017, the CMO will spend more on IT than the CIO (chief information officer)”.
And this data is so huge (Big Data) that it has become difficult for traditional databases to handle it. The CMO (Chief Marketing Officer) have to adapt his marketing campaign to the changing trends and platforms of consumer spending. Companies have already started focusing in this direction .It is evident from the fact that marketing spends have increased on online platforms as compared to last year.
FEATURED ARTICLES Big Data poses numerous challenges and opportunities which will impact the way marketing and sales are done-
“Big data delivers big insights to marketing and sales department”
Customers could be reached anywhere through digital platform. Hence marketing campaign with the advent of big data are no longer limited to demographics.
Predicting next possible aspiration: Based on the past transaction patterns future demand could be estimated using predictive tools. It overcomes the guessing factor, making the C-level executives happier. Data analytics will replace to some extent the human factor with algorithmic outputs. Mass customization: Nowadays customer don’t want solution which are one size fits all kind. Big data gives the chance for customization on a massive scale. Flexible pricing: Based on the past spending patterns, discounts can be offered to those who are big spenders or are loyal customers.
Relevant and Focused promotion campaigns: Segmentation would be affected by the insights from Big data .It will make marketing more relevant as not the same content of promotion would be delivered to everyone. It would be based on his past transactions and preferences. Inclination towards service: Marketing will become more service oriented .It will cater to individual needs and make customized offers. Social Media will gain importance for Marketing and sales departments Organizations’ need to be continuously listening to the customers through the impressions they leave on social media about their brands through comments, blogs etc. This platform will gain importance as it can enhance or damage the brand image.
FEATURED ARTICLES Smart data through analytics on Big Data will lead to â€“ SMARTER INSIGHTS(hidden in the huge data) SMARTER SEGMENTS SMARTER MESSAGES (customized messages) for each individual across the web, email, social media and mobile. Big data will force the CMO and CIO to work in coherence as information is something on which the whole game of marketing will be played. Big data will also reduce the spending on traditional marketing and sales campaign. Big data will become the new platform of competition for the CMOs and the first mover advantage will always be there.
Through analytics applying science to the art of marketing
BIG DATA AND ANALYTICS WILL MAKE MARKETING SMARTER
FEATURED ARTICLES .” it give rise to the Publicis Omnicom Merger: Will biggest ad giant?
GARGEE SHARMA - TAPMI
The merger of two of the “Big Four” Global advertising holding companies has led to the formation of POG (Publicis Omnicom Group) which has compelled the advertising industry to reflect on its aftermath. Publicis is an experienced player in the advertising industry and has established its roots through its strategy of developing digital expertise and skills across markets, whereas Omnicom is a new entrant and has achieved a place among the top players due to its acquisition of the Mudra Group. This merger is a constellation of 250-odd agencies and businesses across a range of branding, creative, social, media, digital, design, production, and public relations fields. The two of them represent brands like Pizza Hut, PepsiCo, Coco-Cola, AT&T, Procter & Gamble, McDonalds, and WalMart.
While some believe that this merger is a bold move to increase efficiency, others feel that it can be a destabilizing force in an already unstable industry. It is more a celebration of account book than of creativity. Industry pundits believe that the effect of the merger on the advertising industry won’t be evident for at least a year. But since POG constitutes around 50% of the market share, this might have both positive and negative outcomes in the near future. Advantages include occupying the digital marketing arena, achieving a high degree of creativity and economies of scale, sharing of consumer data by the merged companies, and better negotiating power with the clients. But since the major portion of this industry’s activities are dependent on finding, creating and executing inspirational ideas to motivate the customers to prefer their products, there is a certain limit beyond which scale can be a disadvantage- creative ideas get subdued, talented people feel lost, and everything adds to the cost, for e.g., media buying is the only way through which POG might get acceptance in some countries. Hence POG might have to sell small brands in some countries as it holds around 20% of global media spending.
FEATURED ARTICLES Since one is headquartered in France and the other in New York, their way of working, the processes involved, and the strategies implemented would be significantly different, hence measures have to be taken to align them. Smaller firms might scare away the big giants
One of the unintended consequences of the Publicis Omnicom Merger could be the growth in small and middle sized innovative and creatively driven firms. As these firms continue to grow larger, giants like POG will have to accept only the largest client accounts, hence leaving a huge opening for the smaller operators who would be ready to provide the project specific creative and more innovative ideas for far less money.
The most important issue to be addressed is the right kind of talent needed for this post merger scenario. The major product that this merged company will sell is creative ideas and hence the critical issue which needs to be addressed is that there should be a rightsizing of the people, as there might be stereotyping or clash of the creative ideas.
In fact with lower overhead and no shareholder demands, these small, independent firms can escalate to cater to even bigger clients who demand greater personal attention. To convert this merger into a sustainable competitive advantage for the two companies, not only the financials but a lot of other things have to be emphasized upon. These can be- the kind of leadership for the POG group, coordination and collaboration required by the 250 odd companies and the employees, the compatibility of the organization culture and evolution of a new culture after the merger.
FEATURED ARTICLES .â€?
The Ad cap from October: What will brands now do? Shikha Verma - JIM, Lucknow The television platform continues to be an effective medium for advertisers at large who strongly believe in the power of this medium. The current economic environment is difficult. The ad market is not great . The Indian broadcasting industry is in a tizzy following the Telecom Regulatory Authority of India (Trai)'s binding decision to implement a 12 minute per hour ad cap effective from October 1.
With the slowdown, most genres apart from the Hindi GECs are facing a revenue crunch. Also packaging in digital cable has not been implemented. In such a complex government and business environment, the advertiser's target audience and consequent decision remains the bone of contention. After all, with the impending digitisation, there is a lot of ambiguity revolving around which channels are reaching the audience and which are not.
The impact will be varied across genres and channels. It's a function of demand and supply and their respective state of inventory utilisation. Fundamentally prices will go up across channels and inventory utilisation across under leveraged channels will improve. Channel
General entertainment channels(colors & star) Movies now English movie genre
With the AD-Cap no doubt, there will be great pressure on marketers too as they get shorter spans to showcase their offering, the reach as well as the frequency of the advertisement per capita population will be reduced to a miserable extent,making marketers rethink their edit strategy. There will be little room for the marketer to put the brand in the mind and soul of the customer.Ad cap will limit the exposure of the brand to the customer eye,thus it will take longer than before to attract the customer towards the product.
FEATURED ARTICLES Brands will be paying more for ads, so they will demand better ads; Creative effectiveness takes on a whole new meaning. This may also facilitate an increased usage of other media to supplement the brand message with 360-degree campaigns.
With the ad cap the competitive advertising go on rage and some of them have given a clue too eg. colgate vs pepsodent aggressive advertising directly attacking the competitor, due to highly competitive market sentiments In the current scenario, a commercial is produced in various versions; the 40seconders are used essentially when the commercial is freshly launched. This 40seconder then builds thematic value and turns into an average 30-seconder.
The role of the medium will keep changing. Less people are watching TV, while a high quotient of the audience is now on mobile and YouTube. You cannot say TV has become expensive, so cut the length. Media plans will have to be tinkered according to brand needs. Dependency on media will become low in India now, with people looking for more platforms to balance and effectively deliver the brand message.What seems quite clear is brands will have to prioritise how to optimise their usage on television to make best of the duration!!!
ACROSS 1. Red Digital, one of Indiaâ€™s leading social
media agencies has been acquired by which multinational digital agency? 3. With India allowing 100 per cent FDI in single brand retail, which French premium cookware company is set to open its own outlets across the country. 6. which automobile company is set to launch its first all electric car? 7. A street in which city in Canada has been named after Mahatma Gandhi on the occasion of India's 67th Independence Day? 8. Which submarine sank after a blast with 18 people on board at naval dockyard, Mumbai?
DOWN 1. Which company has launched Rs 12 crores hunt for Indiaâ€™s most innovative social entrepreneurs? 2. Who has joined iContract as senior Vice President and General Manager? He earlier worked with Jack in The Box Worldwide. 4. Which drug major has dropped anti-cancer drug Herceptin patent in India? 5. Who has been appointed as head, group strategic and marketing communications of DBS Bank?
ANSWERS 1. Gozoop (A), Google(D) 2. PChallapalli 3.LeCreuset 4.Roche 5.SheranMehra 6.BMW 7. Winnnipeg 8. Sindhurakshak
ANNIVERSARY AUGUST 2013 2013
Call for ARTICLES CALL FOR ARTICLES SEPTEMBER 2013 Articles can be sent on any one of the following topics*:
1. Maruti's Stingray - is this the time for 'sporty’ versions of automobiles? 2. Colgate Vs Pepsodent brand war – competitive advertisement trending again? 3. Are Print ads effective in today's context?
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The TEAM THE TEAM TWEETS by Megha Gupta Itâ€™s all about AD-itude by Ishaan Srivastava Brand MARK ive by Sweta Panniker COVER STORY by Alakh Krishnani SPECIAL STORY by Niharika Srivastava HALLMARK CAMPAIGNS by Pavanshu Agarwal BOOKWORM by Ritika Brahme SquAreheaD by Tavishi Agrawal BUZZ by Pavanshu Agarwal REWIND by Ritika Brahme PROOF READ by Megha Gupta DESIGNING by Divya Damera Richa Garg Meera Thacker Shweta Pannickar PROMOTIONS by Nishant Singla Meeta Khatri Ishaan Srivastava
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