ED SPEAK Team
The one trait man has retained since time immemorial is also the one trait which has shaped time itself. Our species came into being two hundred thousand years ago. We've been quite busy since then, in the attempt to master our fate and we seem to be well in control till date. In the past, we discovered fire and the elements didn't defeat us. Today, we're on Skype and time-zones don't exist anymore. Two hundred thousand years of winning against the odds: that is what the human survival instinct is really about.
We're still around, because we know how to win. Old habits die hard!
The November 2012 edition of Buzz – The Markazine explores the beauty of man's constitutional inability to lower his expectations, to remain content, to stay put, to accept failure. It's only fitting that our Cover Story features the recently concluded London Olympics, one of the grandest competitive events in the world – where victors weren't only athletes, but also marketers that kept us hooked.
Arun Shankar Ragini Kate Aarti Khatwani Shreyansh Batia Annesha Ghosh Abhishek Bhalla
Vantage Point is back too, this time around bringing you lessons from Winners of mammoth B-School competitions in India, L'Oreal Brandstorm and Mahindra War Room. Speaking of competitions, don't miss out on the Mitashi Case Study, to be launched by NJM and Buzz this December. There's more about that in the later pages of the magazine, do read on and stay tuned! Adding to the quality of content, Premiere houses our best entry this quarter, delving deep into the Mobile App revolution that's taken control over our lives. We're also pleased to include an interview with Mr. Rajiv Bhatnagar, Director – Hazira Facility and COO, Essar Steel in our Expert Speak section which has proven to be an insightful piece on the Indian Steel Industry. We thank you, our readers, for your article contributions and for your valuable feedback over the last few months. Readers make a magazine more than anyone else does. I would also personally like to thank both the Design and Editorial Teams. Without your patience, dedication and quality work, we'd never have lived up to what this edition is all about.
Ragini Kate Editor Buzz - The Markazine
1| Buzz - The Markazine | December 2012
Contents Premiere Mobile Apps: Hitch your wagon to a star! IIT Bombay
Cover Story Inspire a generation: The Story of the London Olympics
Trendz Word of Mouth: The Cheapest form of Publicity! NMIMS, Mumbai
Gyaan Are Freebies Enough? A Consumer Perspective SIMSR, Mumbai and XIMB, Bhubaneshwar
Industry Watch: Coffee made me do it!
Expert Speak Interview with Mr. Rajiv Bhatnagar, COO, Essar Steel
Vantage Point Winnerâ€™s Perspective: B-School Competitions
Tidbits The Latest in Business and Marketing
Competitions Mitashi Case Study Competition
2 | Buzz - The Markazine | December 2012
MOBILE APPS: HITCH YOUR WAGON TO A STAR!
Maheshwar Pathania Maheshwar Singh Pathania is a final year student of SJMSOM, IIT Bombay. He is an Electronics Engineer from PEC, Chandigarh. He was a part of the MITâ€™s Accelerating Information Technology Innovation, India Chapter for Android Application Development at IIT B. He is a hardcore football fan and loves to travel.
In its '21stAnnual Words of the Year' vote, the American Dialect Society, voted 'app' (an abbreviated form of application, a software program for a computer or phone operating system) as the wordth of the year for 2010. Android was launched on 6 November 2007 â€“ and more important than that was the launch of a Google-led consortium of 84 companies (mobile operators, handset manufacturers, semiconductor companies, software companies, and commercialization companies) called Open Handset Alliance. These members swore not to produce phones that run incompatible versions of Android. So, why is everybody so eager to board this Mobile Apps Wagon? Where did all this enthusiasm come from? What does it have in store for everybody? Where will it take us? These are some questions addressed in this article. BREW was the first ever mobile application platform with an app store (Qualcomm, 2001). But the actual paradigm shift - from 'Snake' being introduced by Nokia in the 1970's to the 'Angry Birds' phenomenon of today - has happened over various intertwined levels, and it doesn't seem possible to pinpoint the emergence of the first ever app. Back when the world was still toiling with firstgeneration mobile phones, trade secrets were closely guarded and phone software was developed in-house. When customers asked for more, the Internet arrived as the medium to deliver. Java and Flash websites were launched but could not do justice to the browsing experience on mobile phones. WAP came as the answer at this juncture; and this was when application developments began to come out of company closets. However, WAP could not be customized, there was no built-in billing mechanism, and consumers found it slow and frustrating. Labeled as 'WAP - Wait and Pay', it soon became extinct. This was when it all geared up: the customer wanted more than just a calling facility in his phone- memory got cheaper, batteries got better
3 | Buzz - The Markazine | December 2012
and PDAs started running on versions of common operating systems like Linux and Windows. Even traditional desktop programmers could suddenly work on mobiles. Mobile phone manufacturers realized that the in-house application development model is obsolete and they need to go all out for developers. Enlightened, they came up with proprietary mobile platforms. Garnet OS, RIM Blackberry OS, Java ME, Symbian OS, Apple's iOS (2007) and Android (2007) were born and thus began 'Platform Wars' that we still are an audience to. So, what does Mobile Application Software bring to the table? Let's look at India - a developing country with a lot of coders and a lot of consumers. Let loose an application programming platform and allow people to
demands of speed, reliability and 'I must see only what I want to see' are met in Mobile apps. As the 'Dollar 1 Apps' flood the markets, this economy is betting on scale with pricey apps only at the tail end. ‘Getjar' (A directory and download service of mobile games and apps by independent developers) predicts that the global app economy will hit revenues of $17.5 billion by 2012. A recent Nielsen survey finds that if Smartphone users in India were a country, it would be larger than Australia. Android rules the roost in India with Indians spending an average of 2.5 hours on smart phones daily. This level of consumption has brought smiles to the faces of a lot of industries. Marketers and advertisers have inundated the markets with innovative adverts that can be pushed into a mobile phone and not annoy the customers like bulk SMS
“Why is everybody eager to board this Mobile Apps Wagon?” make money out of it; with virtually zero start-up cost – you can't think of one reason why this won't work. The ecosystem in India seems ideal for app developers, HTML 5 is here for seamless integration of services, 3G has been launched for data transfer without any hiccups and 4G is already on the cards. Massachusetts Institute of Technology (MIT), with Google recently concluded a short course in India called 'Accelerating Information Technology Innovation' in which some 30 students from IIT Bombay participated. They were given insights into entrepreneurship based on Mobile apps. In just two months, seven start-up pilot ideas came up – talk about speed! The Application business has also given birth to various new revenue models in Mobile world - the freemium model and virtual goods are additions to the already existing revenue models like subscription based, advertising, paid apps and offer and survey models. Consumers find that their
used to. Consider telecom - Aircel recently adopted Blyk, via which users get free talktime and SMS for watching advertisements on a daily or weekly basis. The question still remains though - 'How does one be non-intrusive yet effective?'
4 | Buzz - The Markazine | December 2012
premiere Banking firms have boarded the appwagon too, with a transaction on Mbanking costing one-tenth of what it would cost at a branch. Even Bollywood refuses to stay behind; Ra.One released a mobile game as a pre-launch gimmick to make a place in kids' minds. Every industry that you can think of from the depths of rural India to the most modern urban setting finds space in the mobile application domain. 58% of Fortune 50 companies have dedicated mobile apps. The giants are actually engaged in developing mobile application strategy for their firms. There is
hardly any use you can't put an app to. Talking about why people buy apps, here is an interesting take. iStore has an app, 'I am Rich' worth $999 and it pretty much does nothing! All it does is display a glowing red gem on the handset screen. While the application was available, eight people bought it, at least one of whom claimed to have done so accidentally. Six US sales at $999.99 and two European ones for â‚Ź799.99 netted between $5,600â€“5,880 for developer Armin Heinrich and $2,400â€“2,520 for Apple. All for a status symbol! With voice tariffs going down in the basements the service providers hope to replicate the success of Apple's I-store. In 2010, within 20 days of its launch and with next-to-nothing publicity (other than online) Atul Bindal, President, Mobility at
5 | Buzz - The Markazine | December 2012
Bharti Airtel claimed over one million downloads. As more and more users switch to Mobile apps from basic mobile internet; this translates into increased data usage and thus more dollars for Service Providers. Mobile apps have evidently brought about a change in the whole concept of mobile phone as a product, which was once positioned in consumers' minds as a device to make calls. It then became a status symbol, and now it seems that they are a platform for customised apps and data transfer services. Money lies in data transactions for service providers who are able to provide customers with what they want Let's take it forward from the Platform Wars to look at the future. BREW is definitely a dinosaur. A study by Vision Mobile finds that Symbian developer abandonment rate has accelerated from 39% of developers last year to 52% in 2012. Clearly, developers heeded Nokia when it unambiguously declared it would bet its Smartphone business on Microsoft. Blackberry is also in trouble with its USP of fast messaging, irrelevant with what Android and iOS have to offer in terms of communications. This does not come as a surprise that RIM experienced a 25% decrease in year on year shipments in Q1 of 2012. It can also be observed in India that the final battle will be Android v/s Apple; the rest will either join one of the forces or cease to exist. Windows 8 has been a ground of war between its apps and Internet Explorer, with one trying to eat into the other's share of user access time.
It is also clear that Microsoft perceives smart References: devices as leaning towards touch screen - the apps are neatly tailored for touch screens only ! All references have been mentioned in the article by the (wonder what this augurs for laptops and author desktops!). For early adopters it may be a big hit but for the majority, one predicts it could be too much too soon. It is also yet to be seen what the developers have to offer in the space of Enterprise Applications, a field that has recently picked up pace. Keep an eye on the names like Affle, Twist Mobile, Nextwave and other early adopters.
An end to this article comes with some food for thought. This one comes from Chris Anderson, Editor-in-Chief, Wired – the famous American Technology magazine: “You wake up and check your email on your bedside iPad — that's one app. During breakfast you browse Facebook, Twitter, and The New York Times — three more apps. On the way to the office, you listen to a podcast on your smart phone - another app. At work, you scroll through RSS feeds in a reader and have Skype and IM conversations. More apps. At the end of the day, you come home, make dinner while listening to Pandora, play some games on Xbox Live, and watch a movie on Netflix's streaming service. You've spent the day on the Internet — but not on the Web. And you are not alone.” Will applications kill the web? Wait and watch.
6 | Buzz - The Markazine | December 2012
COVER STORY Authors
â€œINSPIRE A GENERATIONâ€?:
THE STORY OF THE LONDON OLYMPICS
Siddhi graduated from VJTI Mumbai and worked at Larsen and Toubro Ltd. for two years. She swears by the tenet "Seedhi Baat No Bakwaas", has a penchant for learning languages , finds solace in making greeting cards and is a feisty Mumbaikar.
Jaideep Banerjee Jaideep graduated as an Electronics engineer from Fr. Agnels, Bandra. He worked in TCS as a datawarehouse developer. He loves discovering new genres of rock music, reveres Roger Federer and has been a hardcore Mclaren Mercedes fan.
Akansh Gupta Akansh graduated as an Electronics and Telecom engineer from MIT, Pune. He worked at Singapore Telecommunications in pre sales and sales. He loves travelling and watching movies. He is a proud tifosi and FC Barcelona fan. He is an absurdist. All three are currently pursuing their MBA at NMIMS, Mumbai and are part of the Buzz Editorial Team.
7 | Buzz - The Markazine | December 2012
The motto Citius, Altius, Fortius- faster, higher, stronger typifies in many ways the changing dynamics of the present world. With these thoughts strongly ingrained in the minds of the organizers along with the burden of a strong legacy of Beijing, the London Olympics were inaugurated on 27 July 2012. Roughly one individual for every six million on planet Earth stepped up onto the Olympic podium this year at the recently concluded London Olympics. LESSONS APLENTY So did sports rule the roost in the Olympics? Not exactly when you have a global viewership of around 4.8 billion! This meant that marketing brains working overtime over how to grab maximum eye balls and leverage the cascading effects of social media. Begin with a roar: The opening ceremony is a perfect platform for a host nation to display its culture and leave behind a legacy. A $42 million show directed by Danny Boyle saw the Queen, Daniel Craig, Rowan Atkinson and David Beckham come together on one stage. Not surprisingly, the BBC reported a peak audience of 27 million for the London ceremony. Make a 'difference': The London Olympics 2012 introduced live 3D coverage and super-high vision coverage for the first time in the history of the Games. Developed by Japanese broadcaster NHK, Super high vision offered 16 times the definition of HD and 22 channel sound. Additionally, 33 'true 3D' cameras were used to capture close to 230 hours of 3D coverage. Riding the wave: This was certainly not the first Olympics where social media came into prominence but the London Games surely exemplified the multipurpose tool that social media is. Fans put up display pictures of their favourite sporting sensations in the run up to the event. The 'oohs' and the 'aahs' of successes and near misses were heard louder on Twitter and Facebook.
Usain Bolt's signature pose 'The Bolt' was mimicked by people across the globe after he smashed every record in the book. Think Olympic spirit: Pierre de Coubertin who founded the International Olympic Committee (IOC) was of the view that the important thing in life was not to triumph, but to compete, and that too against oneself. The struggle of the human spirit beyond barriers both physical as well as mental is what kept us glued to our screens. The media went abuzz when Mary Kom, the 29year-old Indian, a mother of twins had to settle for a bronze. Usain Bolt, Michael Phelps, Kim Rhodes, Misty May-Treanor and Kerri Walsh gave writers across the world fodder for cover stories.
Controversy means multiplied eyeballs: From the logo controversy which invited the Iranian backlash to racism on Twitter, from a sea of empty seats in stadiums to doping which has terminated careers for famous sportsmen, the Olympics were not left without their fair share of controversies. Even before the event started, the organizing committee came under severe fire because of security lapses, ill-equipped transit facilities from the airport to the village and the gate crashing of an unidentified woman with the Indian contingent. MARKETERS HAVE A FIELD DAY The London Olympics was also a celebration of unique marketing campaigns! Major brands
â€œThe London Olympics 2012 introduced live 3D coverage and super-high vision coverage for the first time in the history of the Games. Super high vision offered 16 times the definition of HD and 22 channel sound.â€?
8 | Buzz - The Markazine | December 2012
COVER STORY the Olympic spirit. However, it was Adidas and Proctor & Gamble that launched campaigns that not only made the audiences stand up and take notice but also earned plaudits from the pundits.
in every borough, acted as a source of inspiration for the locally chosen ambassadors' peers as well as made them connect to a Web platform and share their own experiences.
Adidas set the ball rolling by teaming up with Sid Lee, the advertising agency behind Nike's 'Make it count' campaign. By making the youth the core element of the campaign, Sid Lee was able to create a feeling of belonging to the Olympic family among the younger generation. As part of the campaign, 32 Adidas ambassadors, each one representative of a borough of London, were taken on a whirlwind ride.
Procter & Gamble on the other hand released the “Thank You Mom” video. The video featuring mothers on four continents in London, Rio de Janeiro, Los Angeles and Beijing, instantly struck an emotional chord with the audiences. Given the occasion, the video that showed strong willed, inspirational mothers raising their children and moulding them into medal winning athletes of the future, fit the bill perfectly.
“Sid Lee, the agency hired by Adidas, made the youth the core element of the campaign and by doing so was able to create a feeling of belonging to the Olympic family among the younger generation” The ambassadors got opportunities of a lifetime; case in point being a 14-year-old triple jumper who got to train with Britain's top athlete, Phillips Idowu. Short documentaries encapsulating individual storylines were integrated into a full-blown campaign comprising television, print and social media content. The print ads, put up
PICTURE PERFECT? The London Olympics, however, did not end without a fitting share of flak and criticism. In a sense this was not necessarily a bad thing. From an organizer's point of view, there are always valuable lessons to be learnt from the mistakes committed and as the baton is passed to Rio for the 2016 Summer Olympics, there are certain important aspects from London that Rio can factor in their preparations: An effective transport system: At the heart of every major sporting extravaganza is the smooth transition of the athletes from the airport to the games village and fans to the games venue. London unfortunately faced a barricade in this aspect. The frustration of the
9 | Buzz - The Markazine | December 2012
athletes was echoed in a tweet by Kerron Clement, a U.S. 400-meter Olympic hurdler, which said that “athletes are sleepy, hungry and need to pee. Could we get to the Olympic Village please?” and, “Um, so we've been lost on the road for 4 hours. Not a good first impression, London.”
Rio is expected to face tougher challenges as UNESCO has awarded World Heritage Site status to a substantial portion of the city and the unavailability of the high speed rail link from Sao Paolo to Rio. The organizing committee of the Rio games needs to come out with an innovative solution to circumnavigate these challenges. Countering ambush marketing: The London Olympics were the most regulated Games ever in terms of Sponsor Brand protection, a major reason being the increasing popularity of social media. Under the London Olympic Games and Paralympic Games Act, ‘brand exclusion zones’ were set up across the city. They prevented any brands that weren't sponsors from displaying ads or logos in these zones. As per the IOC's mandate, athletes were not allowed to comment on the performances of their competitors, nor were they “permitted to promote any brand, product or service within a posting, blog or tweet or otherwise any social media platforms or on any websites.” Yet, organizers failed to stop Nike and Paddy Power from successfully launching their campaigns and gaining mileage from the
games. Rio will have to work on an extensive strategy to deal with brands planning an ambush campaign. The astonishing pace of social media penetration will make the task even more onerous for Rio. The success of any games depends on the legacy the games leave after completion. The London Olympics will be remembered for a pivotal role played in inspiring a generation. At times when the key powers of Europe were clamoring for rejuvenating their economies, the Games gave them a sense of hope and multitudes of self-confidence. The world can learn a lot from London and the lessons can be incorporated for years to come in any major event. The words on Channel 4's outdoor advertising campaign 'Thanks for the warm-up' perfectly captures this sentiment. Is Rio up for the challenge? It remains to be seen. References:
10 | Buzz - The Markazine | December 2012
WORD OF MOUTH: THE CHEAPEST FORM OF PUBLICITY!
Abhishek Shenoy Abhishek Shenoy is currently pursuing MBA at NMIMS, Mumbai, class of 2014. He is a die-hard Manchester United fan and would love to watch a live soccer game between Manchester United and Manchester City at Old Trafford with actress Anushka Sharma. When he is not dreaming soccer, he reads and listens to music. Abhishek wants to be a marketer with a ‘difference’.
11 | Buzz - The Markazine | December 2012
Two hours and counting! That was the time I spent looking up a new restaurant to dine at. All of a sudden, a friend called and in the 10-minute conversation that we had over the phone, she spent 5 minutes going gaga over Barbeque Nation. “You must check out the ambience”, “you will surely like the menu”, “the service is unmatched”, “You have GOT to check it out!” and so on and so forth. Exactly an hour after I hung up, I was at Barbeque Nation feasting on by-far the most succulent non-vegetarian fare that I have ever come across. What I had not accomplished even after two hours of searching had been concluded in 5 minutes. Welcome to the world of 'word-of-mouth' marketing! Consumers these days place a lot of faith in opinions from trusted sources. Even though marketers spend millions in elaborate print advertisements and television commercials, the irony lies in the fact that a consumer's mind is eventually made up by something which is not only simple but also free: word-of-mouth marketing. When consumers plan to make relatively expensive purchases, they tend to research elaborately about the product and read opinions and views of various people who have purchased the product. Considering the plethora of brands available to choose from, word-of-mouth marketing can make a huge difference in the decision making of the consumer. Digital media is playing a very powerful role in this growth of wordof-mouth marketing. Product reviews are posted online and opinions are being spontaneously published on social networks. Some pioneering customers even create blogs that can make or break brands. Companies that choose to undermine this marketing tool are perhaps digging their own graves. However, as consumers spend more and more time on the internet, researching products and brands, companies have begun to recognise and act on the importance of word-ofmouth marketing. Providing an excellent customer experience is the key to leverage word-of-mouth marketing as a
cutting-edge marketing tool. Why is Flipkart so popular these days even though the some of its products are being offered at lower prices by other e-commerce websites? Flipkart provides an excellent end-to-end experience and sticks to its core value proposition of a user-friendly website and convenient, on-time delivery. Customers tend to be loyal to such brands, post candid reviews of their experiences on websites and blogs, and recommend Flipkart to others. Users count on product reviews on websites such as Flipkart and they severely influence purchasing decisions. On the contrary, when one reads about a certain airline misplacing and manhandling passengers luggage (who can forget 'United Breaks Guitars!'), misbehaving with customers and being
indifferent to customer complaints, it automatically deters them from considering the same airline for future travels. Thus, experiential word-of-mouth accounts for major purchasing activity in any product category. Companies should increasingly engage in more BTL promotions to get consumers to talk about the brand. Interaction induces a sense of belongingness towards a particular brand and free goodies and discount coupons are certain to trigger a positive buzz. Companies also involve consumers in product development which helps in generating positive word of mouth as consumers tend to talk a lot about a brand even when it is in its initial stages. One should not underestimate the role of traditional marketing campaigns that can also
â€œEven though marketers spend millions in elaborate print advertisements and television commercials, irony lies in the fact that consumer's mind is eventually made up by something which is not only simple but also free: word-of-mouth marketing.â€?
12 | Buzz - The Markazine | December 2012
TRENDZ help spread positive word-of-mouth. I believe Volkswagen is the benchmark when it comes to innovation in print advertising. Recently, Volkswagen created a 'tremor' in print by using vibrating chips that were attached to the last page of several newspapers. The intention was to convey to the consumers the unique features of the Polo and Vento. Even though this was experienced only by readers of these newspapers circulated in metros, it set the tongue rolling and was one of the main topics of discussion for the day. People started talking about the brand and like most other Volkswagen advertisements the 'tremor' was a huge success. Campaigns like these can impact customers so positively that they tend to
spread word about the brand to others and this message can have a far greater impact on people than the advertisement itself. Marketing campaigns that generate positive word-of-mouth tend to have a greater reach and influence. Celebrities endorsing a particular brand can trigger a positive buzz when it comes to product launches and marketers can use word-of-mouth as a strong weapon to compliment it. Philips, by roping in John Abraham as its brand ambassador, has generated a huge buzz around its malegrooming segment and has effectively used this technique to get positive feedback about its products. The USP of the product plays a critical role if one wants to generate positive word-of-mouth.
â€œIn these testing times of shorter consumer attention spans and fast dying conventional advertising media, marketers should strongly rely on word-of-mouth marketing to rip through competition and to stay far ahead in the race.â€?
13 | Buzz - The Markazine | December 2012
Dominos, for example, stands for quick delivery, Apple products are defined by their simplicity and so on. Marketers should know what they really need to focus on in order to create maximum impact. Secondly, a company should strive hard to find 'customer influencers'. It is a common saying that one should know where to tap rather than how to tap. Instead of simply going all-out in your campaign, companies should try to find customer influencers and give them something to talk about. These influencers act as brand evangelists and can play a huge role in promoting the brand. One of Microsoft's "MVP" (Most Valuable Professional) customers is known as Mr. Excelto his followers. On some days, his website gets more visits than Microsoft's Excel pagerepresenting an audience of obvious importance to Microsoft, which supports Mr. Excel's efforts with 'insider knowledge' and
pretty much blindly bank on the consumer to advertise the product / brand or company for free. In these testing times of shorter consumer attention spans and fast-dying conventional advertising media, marketers should strongly rely on word-of-mouth marketing to rip through competition and to stay far ahead in the race.
Gangal – “Volkswagen creates tremor in print”, www.afaqs.com, 12th September
!Bill Lee - “Marketing is Dead”, Harvard Business Review, August 2012.
previews of new releases. In return, Mr. Excel and other MVPs like him are helping Microsoft penetrate new markets in an affordable manner. Word-of-mouth marketing is a very effective tool which can generate huge impact. However, it is very important to ensure that it is leveraged upon in an effective manner. One should have effective social media teams to ensure that consumers don't bad-mouth the brand online in any manner whatsoever. More importantly, to prevent negative online publicity altogether, the focus should be on providing an excellent customer experience. This factor will be a key differentiator among brands in the future. As advertising costs rocket sky high, word-of-mouth marketing should be taken more and more seriously by companies and using this simple tool, one can
14 | Buzz - The Markazine | December 2012
ARE FREEBIES ENOUGH? A CONSUMER PERSPECTIVE
Ruchi Singh Ruchi Singh is an MBA student at KJ Somaiya Institute of Management Studies and Research. She is an IT engineer with 2 years of experience in ERP at Tata Consultancy Services. A keen learner of marketing strategies, Ruchi enjoys reading, blogging and graphology.
Sunny Suman Sunny Suman is a student of XIMB, BBSR is an IT engineer and worked with Infosys for 2 years. He enjoys learning from practical experiences which he encounters on a daily basis. He's always game for shaking a leg and likes playing music.
15 | Buzz - The Markazine | December 2012
Welcome to the new world of marketing; a world that changes face in the blink of an eye; a world where the â€œ7Psâ€? are not enough to educate the customer about products and services. How many times has it happened that a beautiful lady walked up to you with free samples of consumer products? You are most likely to have encountered at least one; if you have, she is actually part of a business model by which products and services are provided free of cost but a premium is charged for advanced features or functionalities. The right word for this is 'Freemium'. Free samples are everywhere! We're all used to getting free fries, free coffee, mattress trials, free music downloads, free vitamins, free software, etc. We are bombarded with FREE opportunities to try all types of products and services, but are these freebies likely to convert the target customer into a paying customer? The concept of sample marketing started in the 19th century when soap manufacturer Benjamin T. Babbit offered free samples of his products. The strategy has managed to successfully withstand the test of time and has been adopted by the modern software industry where trial versions of a software are provided free of cost and customers are charged for the licensed version. This sample marketing strategy to reach target customers has evolved from demonstrations at your doorstep to today's use of the internet where orders are placed for free samples. Nothing sells like trying the product free of cost as it provides an opportunity to try the product
before making the final decision of purchasing it; but is the whole idea of just offering a free product enough to attract a customer to buy it? As per the authors' survey conducted on 55 people of different demographics,it seems
Providing free samples has proven to be good, especially for new products. Nearly 67% of the customers were attracted towards the product and nearly one third of customers took the leap banking upon the visual appeal of the product.Also, giving free samples of a new product allows prospective consumers to provide valuable feedback. These responses help producers before they go ahead with mass production. Location also plays a very important role. Nearly 70% of the surveyed customers tended to be interested in the products are available in supermarkets, shopping malls
“Before you create any more ‘great content’, figure out how you are going to market it first.” - Joe Pulizzi and Newt Berrett marketers need to think about the location, incentives, sample size, packaging and even the attractiveness of the sampling staff to plan this activity.
and fairs. These are places where people go to relax and have fun and thus, have an open mindset to try new ideas and experiences. Moreover, being in such a place facilitates a customer in buying the product immediately.
16 | Buzz - The Markazine | December 2012
GYAAN 85% of the customers showed interest in buying a product that is clubbed with discount coupons and other monetary benefits.
67% of the respondents believed and trusted the feedback provided by their friends and relatives, thus proving that word of mouth marketing is not only viable but also very effective.
â€œNothing sells like trying a product free of cost, provided it is coupled with an enriching experience for the customerâ€? The key learning from the survey is that just providing freebies is not enough to make a product successful in the market. Producers have to walk an extra mile and deliver more than that. Some key points to be considered while planning for sample marketing are: Choose location wisely depending upon the target customer As per the survey, sparing time for a free product trial is a major constraint. Shopping malls and fairs provide a favorable chance to attract and retain the attention of customers. The relaxed atmosphere at fairs encourages customers to provide an honest feedback. Supermarkets are places where producers generally distribute or serve free premium products. Potential customers can be easily
17 | Buzz - The Markazine | December 2012
targeted in malls. One must have noticed free samples of Comfort fabric conditioners being distributed in shopping malls such as Shoppers Stop. Offer lucrative discounts/coupons Most consumers prefer attractive discounts and offers, hence it is advisable to attach financial incentives in the form of discount coupons, etc.Be ready for instant purchase by the customer: It is advisable to stock the product for instant purchase by the customer. Asking someone to visit again for the purchase can leave a bad reputation.
major chunk of the market. It is evident that the first step in marketing is to get one's product into the hands of the customer. Nothing sells like trying a product free of cost, provided it is coupled with an enriching experience for the customer. Sample marketing plays a unique role of an ice breaker between the customer and the product, which is truly invaluable in today's marketing ecosystem.
!Research Papers from http://search.ebscoshost.com !HBR articles on Sample Marketing !Online Forums,Magazines and Blogs for Customer Feedback !Primary Survey of the Customers
Word of Mouth is like Wildfire Most consumers take their friends' and relatives' feedback before making a buying decision. Consumers should be encouraged to give feedback on social networking sites where they can share their experience with the product or service. Freebies, these days are perceived as a great incentive to entice customers to create awareness whilst simultaneously promoting the business. Think of any successful brand and it is highly likely that it started by offering a few free samples to test the market and to understand prospective customers. Pizza hut would be a great example. It started capturing new markets by offering free pizzas to potential customers and taking their valuable feedback. Thereafter, there was no turning back. These days, the fabric conditioner Comfort is on a giveaway spree to capture a
18 | Buzz - The Markazine | DECEMBER 2012
GYAAN GYAAN Authors
Industry Watch: Coffee made me do it!
Agni Tripathi Agni graduated from Manipal Institute of Technology and worked for couple of years at R&D division of Maruti Suzuki India Ltd. He is a huge Beatles fan and when not at work, loves to play the harmonica and the guitar. He also enjoys street photography and is proficient at making music videos.
Businesses revolving around coffee are nothing short of a revolution. If Facebook could rivet your social world in the virtual sphere, coffee chains do the same in the real world. Today, there is more to coffee than just the aroma and the caffeine kick. Business deals are struck around a warm cup of coffee, dicey love proposals are accepted more due to the ambience in which it is served than due to the beverage itself. Sunset looks a lot more appealing to the eyes of a philistine over a cup of coffee in a Café Coffee Day by the seaside. The above quote should hence be replaced by something more apt: A DAY without coffee is like sleep!
Ritesh Baid Ritesh graduated from St. Xavier's College, Kolkata and worked in a private construction company for a year, after which he joined TCS's Morgan Stanley relationship to work in the QA department. He enjoys backpacking, loves life outside the classroom and creative activities that stimulate his brain cells. Both of them are currently pursuing their MBA at NMIMS, Mumbai and are part of the Buzz Editorial Team.
19 | Buzz - The Markazine | December 2012
It is a safe bet to say that the blend of coffee with the right ambience is a valuable business proposition. The Bangalore-headquartered Café Coffee Day (CCD) realized this very early. A certain traditionally-coffee-growing family of Chikmagalur formed 'Amalgamated Bean Coffee Trading Company Limited' better known as 'Coffee Day' to cash in on India's aspiration to westernise. The first Cafe Coffee Day outlet was set up at Brigade Road, Bangalore in 1996. Standing tall with over 1200 outlets, CCD plans to add another 1000 stores by 2014. Its tagline – 'A lot can happen over coffee' is a great example of USP deliverance. Unlike CCD, UK based Costa Coffee seems to be primarily targeting Tier 1 cities. 65 out of its 100 stores are located in major
metropolises of India. The company is attempting to capitalise on the belief that an international brand experience in a chic environment does the talking. With such tremendous potential, can the Italians be left behind? Barista entered the Indian market in the year 2000. It was later acquired by the Lavazza group of Italy who foresee a delightful future with a lot more than the 307 outlets it currently owns in India. If you thought that the prospect of heightened competition from major players such as Australia's Di Bella and Gloria Jean's; U.S. based Starbucks;London's Coffee Republic and France's Alto Coffee would give goose bumps to the managers who steer CCD, you couldn't be more wrong. Venu Madhav, the COO of Café Coffee Day
is as cool as its chilled Mochachillo, or perhaps even more! India can easily accommodate 5000 more stores in the next 5 years, he says, with a warm embrace and a complimentary Namaste. With unique concepts such as striking deals with leading Indian oil companies to establish cafes across regions and the introduction of regional Indian staple menus along the national highways, Mr. Madhav exudes confidence. All this has compelled players such as Dunkin' Donuts to stick to their mantra of offering the all time favourite American combo of donuts, bagels and coffee. In this intensely competitive scenario, Gloria Jean's has opted to use Indian coffee produce in order to survive the 112% import duty scare. The Reliance Group's Java Green offers up to 20% discount on all its offerings in captive areas in and around college. This pumps up
“The value proposition of coffee joints is primarily the ambience of the stores which enhances customer experience.The emotional value is further strengthened by the urge to westernise one's lifestyle choices”
20| Buzz - The Markazine | December 2012
GYAAN volumes and also brings in subscribers for its Telecom business. Talk about business acumen! Coffee in a Tea Pot -The Classic Paradox Historically, beverages have been the nation's delight. South Indians primarily adore their coffee and does tea even need any mention? We take pride in our Assam and Darjeeling varieties, but there has been a kind of differentiation between tea and coffee. 'Cutting chai' continues to flourish in Mumbai, but only in the roadside ‘Tapris’. Coffee is now the new you, the social network of our real lives. Why isn't Tea? When you visit a tea stall - the person to your right is a Kashmiri, the person nudging you from behind is a Punjabi and the girl you're waiting for is a Bengali! Let's replace the microscopic view of the above situation and look at it holistically. 28 states, 7 union territories, 2000 ethnic groups and yet the country unites as one at a tea stall! Tea's connect with the masses can be greatly attributed to the fact that the English had outpaced the Americans by a couple of centuries as far as FDI in beverages is concerned. Ever since the East India Company took over the Assam region in the 1820's and started tea plantations, tea has carved a niche for itself in India's tradition and culture. Supply side efficiencies have ensured that every Indian gets his daily dose of tea at a reasonable cost. Coffee on the other hand has had very limited demand from within India and is mostly exported to Europe. However, thanks to liberalization, things have changed recently. Giants like Barista, CCD and Qwiky's Coffe have set up thousands of stores across India. The Coffee business has definitely moved much beyond merely 'selling coffee'. CCD has incorporated music, books, highways, lounges, gardens and cyber cafes to provide a one-stop shop solution to a diverse customer base. That is the value proposition that coffee shops offer and this is why coffee has sidelined tea to establish itself as the numero uno social network integrator of our real lives. In short, if coffee were an actor, its success has hinged
21 | Buzz - The Markazine | December 2012
immensely on the entire star cast of the movie while tea continues to be the anonymous sidekick – an actor who shall soon get its day in the sun. The Cafe-Sphere:By now it is well established that although the annual consumption of tea is 9 times that of coffee, the latter is clearly dominating the cafe-sphere. Let us examine some factors which have been critical to the growth of coffee cafes: Technology: Coffee's popularity in the US has led to rapid development in machinery involved in coffee vending. Thus it has become possible to standardize the entire process of serving coffee. On the contrary, tea is much more personnel dependent. The X-factor: The value proposition of coffee joints is primarily due to the ambience of the stores which enhances customer experience. The emotional value is further strengthened by the urge to westernise one's lifestyle choices. It is much more difficult to create the same perception for a tea parlour simply because it is embedded in our culture to savour a stimulating cup of tea at either our homes or at roadside tea stalls. Supporting cast: Free wifi connectivity, a diversified menu, friendly staff, excellent infrastructure and an unmatched ambience are some savoury tools that the business managers now have at their disposal. It is
almost impossible to not enter a coffee joint whilst walking past it, whatever be the purpose.
Indian Market – The Value Proposition The primary factor that attracts western coffee joints to India is the demographic of the country. Most of the western coffee giants target people between the age of 15 and 29. In fact, research shows that 63% of the customers fall in the age group of 20-29. As per the U.S Bureau International Data Base, there are approximately 24 crore Indians between the age group of 19 to 29. That is the potential of the Indian market. Things certainly look promising but companies must be prepared for minor speed bumps along the road. Every Rs 100 worth of sales at a café results in a net margin of just about Rs 20 due to immense costs incurred on raw materials and operations. Owing to the demand-supply mismatch in properties, managing rentals can be a painstaking task. As part of the 'experience creation' which the brands rely on, the outlets are located at upmarket locales. Staffing costs are also escalating by the day. Yet, this business reaps rich rewards and it will only continue to grow. The nation's per capita consumption of coffee is just 85 grams compared to 6 kilograms in the U.S. This works in India's favour because with growing financial clout, people will continue scouting for avenues to spend and socialise. India is th also the 6 largest producer of coffee in the world; hence, with smart sourcing and efficient supply chain management, costs can be controlled with efficacy. These, coupled with large returns due to economies of scale, are reasons enough to explore, dream and discover the real India – the Incredible India! References:
!http://www.business-standard.com/india/news/as-starbuckslaunch-nears-rival-coffee-chains-get-active/480437/ !http://articles.economictimes.indiatimes.com/2012-0815/news/33216611_1_retail-chains-costa-coffee-bedrock-food !http://www.dnaindia.com/money/interview_costa-has-createdan-international-coffee-culture-in-india_1716263
22 | Buzz - The Markazine | December 2012
Expert speak Author
Buzz: First of all let us congratulate you for achieving the 10 MT capacity at the Hazira facility and dedicating it to our nation. What, in your opinion, are the factors for the success of Essar Steel? Rajiv Bhatnagar: Essar Group has always been foraying into new international markets and business areas in a bid to keep its entrepreneurial spirit alive and to keep growing. We always aim to have a robust value system comprising of positive attitude, action and achievement. We endeavour to create enduring value for customers and stakeholders in core manufacturing and services. Buzz: Could you give our readers a brief history of Essar Steel and a description of its current operations worldwide?
Mr. Bhatnagar is a B. Tech in Metallurgical Engineering from IIT Kanpur. He has also completed an International Executive program from INSEAD, France along with a post graduate degree in Industrial Engineering from IIIE, Bombay. With 33 years of industry experience, Mr. Bhatnagar joined Essar Steel as a Head-Technology in August 2010 and currently holds the position of Director â€“ Hazira Facility. He joined Essar from Arcelor Mittal Kryvyi Rih, Ukraine where he was Vice President - Technical Administration, Projects and Strategy and was responsible for HR operations including organization building for all projects from concept till commissioning. Prior to that, Mr. Bhatnagar has handled key assignments in various areas of technical administration with organizations like Arcelor Mittal, Mittal Steel Skopje (Macedonia), Mittal Steel Galati (Romania) and Rail & Structural Mill at Bhilai Steel Plant for the Steel Authority of India Limited. His career started as a Graduate Engineer Trainee (Plate Mill) in Bhilai Steel Plant of SAIL where he served for over 20 years before going abroad.
Rajiv Bhatnagar: Essar's Hazira complex commissioned its first 0.9 MT per year DRI module in 1989 and has since become the largest single-location flat-rolled steel plant in India, with a capacity of 10 MTPA including a variety of steel sheet products. Located directly on a deep sea port, which represents enormous productivity and a cost advantage, Essar Steel's Hazira complex is comparable to many of the greatest steel plants across the world. The Hazira plant has boosted its capacity to produce hot-rolled band from about 3.6 MT in 2007 to 7.6 MT with the introduction of a new CSP mill. Essar Steel is a globally-renowned steel corporation with a production capacity of 14 MTPA and footprint that straddles 5 continents â€“ Asia, Africa, Europe, the Americas and Australia. Fully integrated from mining to retail, Essar Steel's production capacity is meeting the growing demand of steel, globally. Furthermore, seamless integration, robust downstream capabilities, and a worldwide network of processing and distribution facilities only add to Essar Steel's potential and reach. It has fully integrated operations that span the entire value chain of steel making. Buzz: What is your own assessment of how margins will pan out? And in that light, could you tell us about the earnings outlook for most of the steel companies and the resources companies.
23 | Buzz - The Markazine | December 2012
Rajiv Bhatnagar: Steel prices have touched the bottom now, so going forward in year 2013 margins are likely to go up. There are only two ways to increase the margins for any steel company: a robust sales realisation and reducing cost of production. When the market is good every company makes profit, however it is important to note that companies with low costs make more money than the others. When the market is travelling southwards, these low cost companies achieve respectable profits but the high cost companies either generate negative margins or struggle to survive.
improved with many groups now wanting to build new steel plants in India. This can be attributed to a growth in demand of 46%. Also it is definitely good news from the mill owners' point of view, if you consider the government's target of 10% per annum. India, a great location for offshore sales, is well positioned to offer its steel to Japan, South Korea, Taiwan, the Middle East and even China where steelmakers' costs are much higher.
Generally, companies that produce their own raw materials (iron ore, coal) have a natural advantage when it comes to costs. Operational efficiency is another factor for cost competitiveness.
Buzz: How does Essar Steel cope up with rising input costs?
India is bound to achieve an impressive growth race which it has seen except for the present year. The global trends cannot be worse than now, so in totality, margins in steel industries will go up. However some companies will make more money and some less.
the largest single-location flat steel producer in India and the fourth largest globally. We also use most of the established iron making technologies, like Blast Furnace (BF), DRI and Corex. With BF and Corex joining the previous DRI (Direct Reduced Iron) technology, we now have greater flexibility in utilizing raw materials. Also, the by-product gases generated by the two new units can suitably replace grade ore and achieve superior levels of raw material security. The ability to use alternative energy sources that are significantly cheaper will make Essar Steel among the world's lowest cost steel producers.
Buzz: Is the steel sector losing its shine in India? Rajiv Bhatnagar: No. In my opinion India is an ideal place to build a steel plant for many reasons, the foremost being the availability of high-grade iron ore. The outlook for the Indian steel industry has remarkably
Rajiv Bhatnagar: Post its expansion to 10 MTPA, the Hazira complex makes Essar
24 | Buzz - The Markazine | December 2012
Expert speak Buzz: Where is the competition to Essar Steel really coming from right now, especially in the race for raw materials? Is it from China or from western companies? Rajiv Bhatnagar: There is no long term fixed policy with government to fix the prices of ore. Steel plants having their captive mines from legacy are a major competitor to those producers who don't own mines. As far as raw materials are concerned there is no race that Essar is currently engaged in. Essar is well positioned in sourcing / securing raw material because of its own beneficiation and palletization plants.
Rajiv Bhatnagar: R & D has played a key role from developing new grades of steel through new units like Plate mill and CSP to innovating path breaking processes like recycling of Corex coal fines by briquetting. These innovations coupled with the drive for fast track implementations have made a difference and redefined the product basket with cost competitiveness. From the point of view of speed, innovativeness and impact, the achievements are probably among best in Steel plants. We have successfully commissioned our state of the art facilities with top notch technology suppliers like Midrex, Clecim, SMS Demag, Siemens VAI, Messo, StenHeurty, SVAIC, MCC, SMS Mevac, etc. Buzz: What is the impact of rising coal price on steel prices and how does this affect steel demand? Rajiv Bhatnagar: Coal prices directly impact the cost of steel. Fortunately this is not the sole criterion. Processing of coal and iron ore has a direct relationship with the dynamics of steel industry. Prices fluctuate depending on the demand and supply equations mostly affected by China.
Buzz: Is the Indian steel industry still in underachieving mode when compared with countries such as China? Rajiv Bhatnagar: The Steel industry is not exactly a favourite with the government resulting in many regulations that are imposed without looking into the implications. That is the general difference between India and China across all sectors, not just steel manufacturing. In due course of time, India will again capture the market like it did a few years ago. Buzz: Please tell us more about your R & D efforts and technological development over the year?
25| Buzz - The Markazine | December 2012
Buzz: Based on your experiences, can you share the differences in the steel making processes and markets of Europe and Asia?
respective governments. Outside India, we are planning to set up a 12MTPA palletisation plant at Minnesota.
Rajiv Bhatnagar: There is no major difference. While Europe is a past marvel of technology in the steel making process, it was severely hit by market economics whereas India is the future leader in steel in terms of technology, costs and profitability. Some of the well known steel plants in Europe are either closed or running at reduced capacity while India is looking forward to adding capacity. Buzz: Which markets are lively for Essar Steel currently? Rajiv Bhatnagar: Lively markets for Essar Steel are Automotive, Construction, General Engineering, Energy, Electrical, Metals, and White Goods Segments. Customers range from large Cold Rollers, Auto majors, Construction majors to small and medium size industries. Buzz: What are your group`s expansion plans, both in India and abroad? Rajiv Bhatnagar: We have already commissioned the 1st phase of the Paradeep pellet plant. Now the focus is to complete the 2nd phase by end of this year. Going forward we plan to set up a 6 MTPA steel plant there. Essar Steel has MoUs signed with 4 state governments Orissa, Chattisgarh, Jharkhand and Karnataka for setting up Integrated Steel Plants. However the construction activity has not started at any of these sites, primarily because the preconditions for the start of construction i.e. land acquisition, complete linkage of raw materials and infrastructural support. They have not yet been met by the
26 | Buzz - The Markazine | December 2012
WINNERâ€™S PERSPECTIVE: B-SCHOOL COMPETITIONS With a plethora of competitions round the corner, Vantage Point comes to the rescue of its readers. We bring you interviews with top performers in such competitions where they share their insights and some tricks of the trade.
Team Buzz interviewed Aniruddha Likhite, Priya Amrute and Vrinda Kataruka, better known as Likhi's Angels, the team from SPJIMR which represented India at the L'Oreal Brandstorm International 2012 Finals held at Paris. 1. Describe your experience in one word. Overwhelming 2. How did you approach the caselet? We began with the Indian market for the preliminary round. We took each deliverable one by one and presented the findings/ insights and recommendations in a story form. The primary consumer behavior was understood by online surveys and one-to-one interviews. 3. Inputs on effective primary research? Choosing the correct TG before taking interviews is crucial. Understanding what one wants to conclude from the research is equally important. Questions should be framed such that the responses meet the objective of accepting or rejecting the hypothesis one has made. Hypothesis testing is best done in a one-to-one interview where questions can be customized based on the responses received. Online surveys are also a good way to catch hold of trends in terms of what one is trying to figure out. The number of questions designed in a survey is very critical. The survey should be tested before rolling out for mass filling. It should not lead to fatigue due to incomprehensible questions. 4. How did you prepare for the international round? A very enormous PowerPoint presentation that had inputs from the L'Oreal mentor was the crux of our efforts.An enormous amount of brainstorming went
27| Buzz - The Markazine | December 2012
into our work and a lot of ideas were rejected before accepting the final ones which went into the presentation. Once the presentation slides were completed, our entire energy was focused into delivering the content in the given time frame. The Indian consumer is very different from the international consumer. Getting behavior analysis and responses for international consumers was very difficult. 6. How did you assign roles in the process and how was work distributed? All three of us worked on content finalization and ideating. Vrinda created good looking slides which is an extremely demanding work. Likhite worked on the music and videos. Priya hunted for data, worked on the lyrics and the story line. 7. How easy was it to catch hold of latest and relevant secondary data? It was not very easy. Our challenge involved proposing a product range with a native ingredient. A field visit to where it is grown helped a lot. Secondary data gives an idea about the concept you are trying to apply or will aid the process of creating a business model. A field trip is necessary to validate your assumptions and findings. 8. Can you throw light on the Facebook competition? (After many re-takes) A good picture and some effective promotion helped us create an impactful statement before the finale. 9. Experience of competing on a global level with respect to interacting with teams from other business schools across the globe. It is amazing to say the least. We saw a rich mix of culture and ideas. Creativity was bursting all around. 10. Your suggestions to aspirants: Form a great team (extremely crucial). Have fun while you work!
Bhavin Jain from Jamnalal Bajaj Institute of Management Studies (JBIMS) has been part of teams that have won many case study competitions like P&G Dream Team and JPMC The Deal. Fresh from the Campus Round victory of HUL LIME Season 4 and the National Finals of Mahindra War Room, Bhavin shares a few tips and gives us insights about what it takes to make it big and go the last mile in different case study competitions. 1.Congratulations on your recent performance in Mahindra War Room, 2012. Can you tell us 3 things which according to you are absolutely necessary while participating in a competition of such magnitude? The most important aspect that you should always focus on is not dishing out too many ideas. There should be one or two big ticket ideas and the entire strategy should revolve around them. One more critical aspect is to quantify the costs and budget allocated for advertising campaigns. A detailed explanation on the expected outcome or result from them is also an area that needs to be thoroughly explored. Delivery of the final presentation is also extremely important; give your best speaker maximum screen time.
28 | Buzz - The Markazine | December 2012
Vantage Point 3.How was the entire experience of Mahindra War Room different from other competitions? The case we chose during MWR was on the Farm Equipment Sector vertical of M&M, that which deals with tractors. The challenging part was creating a branding strategy for a product which has been the market leader since many years in the industry. Overall, MWR is probably the only competition where we are given a wide range of cases spanning different sectors and the freedom to work on any case of our choice. 3. When it came to forming your team, what was more important- diversity of skill sets or a pre-established rapport between team members? Diversity of skill sets is crucial. It is very important that each member brings in something new to the team otherwise it will result in redundancy. Also it is very important to have both finance and marketing specializations students in the team. This is primarily because in any competition, no case is pure marketing or pure finance; it is always about strategy which can be best solved when both marketing and finance perspectives are utilized. 4. What critical aspects in terms of content should participants focus upon when they make final presentations? That is something very specific and always varies from competition to competition. Broadly, I can tell you that for any marketing competition, the most important aspect is to focus on the required deliverables and lay out strategies that are implementable and achievable. Idea generation, creating successful campaigns and a thorough
29 | Buzz - The Markazine | December 2012
understanding of the consumer psyche is pivotal. In competitions focused on consulting strategies, the idea is to make a very structured presentation. Focus should also be on providing end to end solutions. In finance competitions, the presentations should be formatted neatly and the depth of analysis should be the main focus. 5. How did you overcome hiccoughs which came along your way? For every competition the majority of the roadblocks are always faced while acquiring data. Most of the time, data from secondary sources suffice. But I would strongly recommend the participants to explore avenues for primary research. To get real insights on the case, primary research is the only thing that can supply actual data. 6. You are also a campus winner of HUL's LIME. Can you share your experience of LIME and how different the preparation was, compared to War Room? Our LIME Case study revolved around an NGO. For such a case, it is difficult to use conventional marketing strategies. Campaigns and promotions have to be costeffective. Also working out the funding and the implementation of those funds was difficult. A lot more primary research than usual was required to solve this case.
tidbits The Latest in Business and Marketing across the World
BMW Shifts Up a Couple of Gears BMW India has drawn the curtain to what it claims to be two major announcements in India. The first is a 1,30,000 sq.ft premium showroom and integrated after-sales touch point, the largest facility in the country and one of the largest in the world. The second is the unveiling of the new BMW X6. It is the most expensive CBU (Completely Built-up) unit in India under the BMW portfolio and also claims to have created a separate category for itself in the same portfolio as the Sports Activity Coupe.
Source ยงhttp://pitchonnet.com/ ยงhttp://www.afaqs.com/ ยงhttp://www.theverge.com ยงwww.business-standard.com ยงwww.articles.economictimes.indiatimes.com
Tata Nano swerves for the youth Ever since it's much-anticipated launch and the subsequent underwhelming response of the market, the Tata Nano has struggled to establish the desired connect with consumers. The latest television commercial for the brand that promotes the improved version of Tata Nano is shot in Goa and targets the youth segment, projects it as a car for the youth and showcases the fun of long drives. (Link:http://www.youtube.com/watch?v=uc1x8LY 1yVg). Tata Nano, along with its creative agency Rediffusion -Y&R, interacted with several Nano owners during the past one year and after an indepth understanding of their feedback, came up with this campaign. estimated to be around Rs 500 Crore with both PepsiCo and Coca-Cola being the two big organized players in the space. Microsoft 'Xbox TV' device due in 2013 with casual gaming and streaming Microsoft is building an Xbox set-top box to compete with Apple TV and others. The move will allow Microsoft to further increase its presence in the living room, providing consumers with a choice between a set-top box and a full next-generation
30 | Buzz - The Markazine | December 2012
Xbox console. The set-top box is part of a twoSKU strategy for Microsoft's next-generation of Xbox hardware that will be unveiled in 2013, with a release date ahead of the holiday shopping season
Pepsi gets Title Sponsorship for IPL till 2017 Pepsi has acquired the title sponsorship for the twenty-20 cricket tournament, Indian Premier League (IPL), for the next five years. The earlier title sponsor for the tourney, real estate company DLF announced the end of the partnership early this year. Pepsi has paid about Rs 396 crore for the rights for the next five Walt Disney launches its 4th offering Disney years, up from DLF's deal of Rs 200 crore. Junior The Walt Disney Company, which so far offered three kids' channels in India, has decided to Mahindra & Mahindra offer trumps Italian strengthen its kids' product portfolio with the bid for Aston Martin launch of its fourth offering, Disney Junior India. Aston Martin stands at the centre of an international takeover battle after Indian motors The other channels from the stable include group Mahindra trumped an Italian bid for half Disney Channel, Hungama and Disney XD. o f t h e B r i t i s h l u x u r y c a r m a k e r . Disney Junior is an extension of the pre-school Italian private equity fund 'Invest Industrial' had programming block on Disney Channel, which is reached an agreement with the owner of Aston branded under the same name and plays Martin, Kuwaiti investment house 'Investment throughout the morning hours. Dar'. But on the very next day Mahindra and Mahindra made a higher offer, leaving the fate Ranbaxy recalls generic Lipitor in United of the 98-year old icon of British motor States engineering hanging in the balance. Ranbaxy Laboratories Ltd. has recalled its generic version of Pfizer Inc's cholesterollowering drug Lipitor in the United States after Windows 8 and Talaash use app for certain batches were found to contain glass promotion particles. The company is conducting an To increase awareness about the features and investigation which it expects will take two weeks. encourage sampling of its new Windows 8 It did not report any injuries connected to the operating system, Microsoft has associated tainted pills and did not say how the problem was itself with the upcoming movie Talaash, which discovered. The recall could cause shortages of stars Aamir Khan, and innovatively used the the drug in the United States. Ranbaxy, the first intARact app in its print campaign. The print ad, company to introduce generic Lipitor after Pfizer's with a red background which instantly grabs patent expired in November 2011, controls about attention, invites readers in bold headings that 60 percent of the market. read, 'Join Inspector Shekhawat in his Talaash. With Windows 8, earlier, Microsoft had collaborated with Shahrukh Khan's movie, Don Sports to get kick from e-commerce 2 f or other devices. Sports Products, as a category, has been witnessing significant growth as far as online retailing is concerned. This trend has triggered the entry of sportsmen and marketers in this
31 | Buzz - The Markazine | December 2012
space and the launch online product offerings for the Indian consumer. The latest to leverage the potential of e-commerce is one of India's biggest cricket equipment manufacturers, SG Cricket. The company recently tied up exclusively with Jabong.com to unveil the VS319 range of cricket bats. The collection is inspired by Virender Sehwag's record breaking score of 319 runs, scored in a test match against South Africa in Chennai in 2008.
Cadbury-Kraft new avatar to begin Rs 2,200cr cocoa pivot Mondelez International, recently formed after separation of the confectionary and grocery businesses of Kraft, the American foods major, has said it would invest $400 million (Rs 2,200 crore) into cocoa production in India, Ghana and the Dominican Republican over the next 10 years, in a move aimed at securing supplies. The company derives a sizable chunk of its $35-billion yearly revenue from markets outside the US. However, faced with the prospect of slow growth in developed markets, it has been turning its attention to those in countries such as India, China, Brazil and Russia in recent years.
genre. The other channel ITV Granada is an English general entertainment channel (GEC) owned by a UK-based private production house. StrawberryFrog launches India operations Scott Goodson, founder and chief executive officer, StrawberryFrog, co-launched the agency along with Karin Drakenberg in Amsterdam in 1999. Finally putting years of speculation to rest and almost four years after the initial feelers made their way to India, 14-year old StrawberryFrog has finally made its official foray into the country with a makeshift office in suburban Mumbai. Mr. Raj Kamble has been named managing partner and CCO.
Mobile Advertising to Triple By 2016, Says Yankee Group Yankee Group published “Mobile Advertising Forecast 2012: Marketing Steps Through the Looking-Glass,” which showcases how and why mobile advertising is finally hitting its stride can no longer be considered an extension of online advertising. The firm estimates that global mobile advertising revenue will expand by three and a half times its present level by 2016. Mobile advertising is exploding in new geographies, the report reads, pointing to so-called “high-growth markets” like Brazil, India and China as places that will drive the increase. Some of the tech and the Internet's biggest companies, including Apple, Google and Facebook have been racing to roll out and improve ads that people can click from their smart phones, tablets or other devices.
NDTV brings two international channels to India NDTV group has signed affiliated distribution deals with two international broadcasters, Trace Sports and ITV Granada, to distribute their channels in India. Trace Sports, a French company, will be the first in the sports lifestyle
32 | Buzz - The Markazine | December 2012
33 | Buzz - The Markazine | December 2012
THE MARKETING CELL Narsee Monjee Institute of Management Studies, V. L. Mehta Road, Vile Parle (W), Mumbai â€“ 400056
Contact Us Salil Pawar President +91-9892118027 firstname.lastname@example.org
Ragini Kate Knowledge Head +91-9833395880 email@example.com
Buzz - The Markazine, December 2012 Behind The Scenes
Ragini Kate Editor Design Team
Akansh Gupta Ashwini Aditya Ram Harneet Ahuja Jaideep Banerjee Ritesh Baid
Agni Tripathi Akansh Gupta Jaideep Banerjee Ritesh Baid Siddhi Rawool
34 | Buzz - The Markazine | December 2012