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THE YEAR THAT WAS... ...AND THOSE THAT WILL BE


Ed Speak NJM launched a magazine one day.

Team

It was one of our cell's most treasured moments, the kind that leaves an everlasting imprint on your existence, one that follows you wherever you go. Budding managers at our own B-school and others, through their enthusiasm, established that the significance of that moment was beyond what we had imagined. Thinking hats were donned, thoughts were penned – and we put it all on record time and again.

Salil Pawar And now we're back!

Rohan Aggarwal Arun Shankar Ragini Kate Aarti Khatwani Shreyansh Batia Annesha Ghosh Abhishek Bhalla

Welcome to Buzz - The Markazine, August 2012. We've introduced three new sections this time around. The first, Industry Speak, features an interview with S. K. Gupta, CEO, Raymond UCO. The intention is to ensure that our magazine maintains a healthy balance between fresh new ideas and those that have actually stood the test of time. The second, Vantage Point, focuses on internship experiences in Rural Marketing. And finally we present Tidbits, that you can gorge on either as appetisers or as dessert. Not to worry, our love-story with Gyaan and Trendz is as mushy as always. Another aspect that's significant - it's been close to a year since our last issue. And that's left a void; in place of which there should now have ideally been an archive of writing, and reading. We aren't comfortable with this void. And so, in this edition, we present to you two trends that were biggies in the year that was: Movement and Viral Marketing. Of course, we can't linger too much either. As modern day business students we ought to know that for modern day businessmen, the present is primarily about facilitating the building of what a company calls a brand and what its consumers call a world of their own – our Cover Story is your introduction to the years that will be. Content is King, after all. It's fitting to quote - “A good book should leave you slightly exhausted at the end. You live several lives while reading it.” That is the essence of our magazine. Do bask in it and spread the Buzz.

Ragini Kate Editor Buzz - The Markazine

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Contents Premiere Spark(th) the Movement, Rise(th) the Brand : Advertisement 3.0 NMIMS,Mumbai

Cover Story Content does the Talking Trendz V for Viral IIM Kozhikode

Gyaan Let Them Choose What You Want to Sell IIM Ranchi

Point of Purchase (POP) Triggers in Retail FMS, Delhi

Expert Speak Interview with Mr. S K Gupta, Group CEO, Raymond UCO

Vantage Point Intern Insight : Rural Marketing NMIMS, Mumbai

Tidbits The Latest in Business and Marketing

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trendz Author

SPARK(TH) THE MOVEMENT, RISE(TH) THE BRAND: ADVERTISEMENT 3.0 Once upon a time, advertising was 'All About Ads'. TV, Print and Radio used to fit the advertising bills. They remain significant platforms till date and innovation is pivotal in this game – relevant examples being 'Airtel's Har Friend Zaroori (HFZ) Campaign' and the 'Times of India and

Nitin Amlani

Volkswagen Print Ad'. But consumers have now updated their profiles and their Current City reads

is currently pursuing his MBA at

'Social Networks'. Specific to the Desi context, the

NMIMS, Mumbai, class of 2013. He

cave-age Saas-Bahu saga(s), the slapstick stand-

has completed his engineering

ups and 24*7 'breaking news' updates have never

from VESIT, Chembur, Mumbai. He

been sustainable options for dynamic Indian junta.

has worked in Tata Consultancy

The numbers support this, as per the Indian

Services Ltd. before pursuing an

Advertising Revenue (IAR) Report 2010: a

MBA. He interned with GE Energy India for their Information Technology Leadership Program. Much more to explore on his blog: http://nitinamlani.com/

prominent increase of 15% (to $26 billion) in revenue from Online advertising as compared to 2009, advertising revenues from newspapers at $22.8 billion and though TV advertising revenues were just a shade ahead at $ 28.6 billion, they are expected to decline. A Buzz is not enough, create a Movement: Marketing models for traditional platforms are purely product-driven. The product enjoys the centre-piece and this is only enough to create a buzz. The emergence of social media and new technology has ensured that everyone is online which means everyone is talking and sharing. Hence, brands now need to learn how to be part of this existing conversation instead of attempting to

4 | Buzz - The Markazine | August 2012


strike up a new one. This is the genesis of

Architects

Advertisement 3.0: this is the model of

StrawberryFrog, an independent advertising

Movement Marketing. Cultural Movement

agency with offices in New York, Amsterdam,

or Movement Marketing is the process of

and Sao Paulo, Brazil introduced and

of

the

Movement:

building brands by identifying, sparking and/or aligning with an idea on the rise in prevalent culture and building a multichannel communication plan around this idea. What works here is that an otherwise non-active individual now has a chance to belong, engage and bring about change. And this is not solely in the context of the individual, it is about the group. Instead of

“A Buzz is Not Enough, Create a Movement!� the conventional method of persuading

implemented this concept. It was launched in

people to believe something, it is about

1999 by Scott Goodson and the agency's first

understanding and delving into what they

campaign was for New York-based Sabra, a

already believe. You share their belief, not

producer of Mediterranean-style foods.

sell your own.

Heineken, IKEA and Wal-Mart are some of the

Thus, instead of merely focusing on

names in StrawberryFrog's clientele.

products, it is a genuine sharing of passions

The Testimonials: In January 2011,

between a brand and a customer. Thanks to

Mahindra announced a new brand positioning

the internet, mobile technology and social

for the entire group and called it 'Rise'. This

media movement marketing helps access a

marketing movement has been designed by

worldwide audience. Evidently, dollars spent on movement marketing work harder

(none other than) StrawberryFrog. For the first time, Mahindra, as a group,

and are expected to achieve better results

communicated to the people under a single

than traditional avenues.

brand positioning. According to Anand

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Trendz Mahindra, “Rise isn't just a word – it is a

optimism about the future and shared a

rallying cry which enables people to unify

common desire to rise, to succeed and create

around shared ideas, values, principles

a better future for themselves, their families and their communities. Corporate strategy at Mahindra explained that this is the reason they built-in the word 'Rise', a simple yet powerful verb that defines the group and succinctly sums up the aspirations of their stakeholders and employees. The group intends to invest Rs. 120 Crore over the next three years in the campaign. Mahindra went a step further by

,

and a way of life or a common goal”. As the

announcing the 'Spark the Rise' campaign in

business of Mahindra grew global, the

August 2011. This campaign encourages

earlier philosophy “Indians second to

individuals/groups to submit their business

none” failed to establish a connection with

ideas. One can come forward and volunteer for

global stakeholders. StrawberryFrog,

an idea, fund the idea and vote/promote the

realised that customers across the world

idea. Media spends are

universally expressed a strong sense of

Crore over the next four to six months, across

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pegged at Rs. 18


various media channels and touch-points. Wieden + Kennedy (W+K) independently owned American advertising agency, designed the 'Go Forth' campaign for Levis in

practical applications as demonstrated by the Testimonials. While Levis recorded more than a 9% rise in the revenue, mainly attributed to the campaign, numbers from Mahindra's Rise

2009. This campaign is also based on the model of Movement Marketing. This unique campaign gets involved in the conversation by talking about the pioneering spirit of America, youth revolution, workers of America, equality and runs the American Independence story in the backdrop. Thus the brand doesn't talk about itself; it gets involved in shared American values and creates a movement. The

speak for themselves, a rise of 27.3% in the

campaign also includes an Alternate Reality

group's revenue this year. According to the

game (ARG), which is an online treasure hunt

Mahindra group, the prime measurement

for Grayson Ozias' (a fictional character)

criteria will however be the customer promoter

$100,000 treasure.

and employee promoter score. It will calculate the scores on the basis of the number of people who recommend Mahindra to their friends, employees etc. There is long list of success stories at: http://www.strawberryfrog.com/our-work. They are an interesting read and will keep you occupied until the next big movement arrives. Going by the pace that has been set, this will undoubtedly be very soon.

If participants are successful at this stage, they reach the 'Real World Event' stage in which Levi's sends participants to find actual clues in places across the U.S. This is the unique part of an ARG - it relates back to something in real

References:

ยงhttp://levi.com.ph/ph/Go%20Forth%20and%20Jeans%20for%2 0Us%20Press%20Release.pdf

ยงhttp://strawberryfrog.tumblr.com/post/365671447/whystrawberryfrog-created-movement-marketing

life. After a participant finds the aversive clue,

ยงhttp://segerjohansson.wordpress.com/2011/05/27/post-modern-

they document it and send it to Levi's.

ยงhttp://www.campaignindia.in/Article/246035,mahindra-bets-on-

Movement Marketing is not just another marketing concept and it has surely found the

advertising-movement-marketing/ 8216movement-marketing8217-for-new-positioning.aspx

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COVER STORY Author

CONTENT DOES THE TALKING Ragini Kate graduated from St. Xavier's College, Mumbai and joined NMIMS to pursue an MBA in marketing. She is a die-hard Bombayite. She loves unwinding with music, indulging in good conversation, receiving u n ex p e c te d g o o d n ew s a n d savouring the better moments of life.

In the late 1990's, social networking sites took a detour from being online communities to orienting themselves around user profiles. And, of course, human tendency is to revel in oneself and one's quest for individuality. End consequence – in the year 2012, if you aren't on any social media, you aren't really on the internet. It is no surprise then that Content Marketing is everywhere. Coca Cola, with the launch of Content 2020, has been a pioneer in taking the leap of faith – pooling resources to focus on a content marketing strategy rather than traditional marketing. The king-sized beverage company marked the advent of a paradigm shift: acceptance is finally here. Companies now know why content marketing is the next big thing and User Generated Content (UGC) is the glue that looks like it is going to hold it all together. The advent of blogs is considered to be a milestone for UGC. Blogs went from being a tiny component of the internet to a predominant source of entertainment and information. As they gained popularity, companies began to customise and theme their own blogs and before you knew it – about 20% of the fastest-growing private companies in the US reported that they did in fact use blogging to facilitate communication (2006). Personal opinions are key to separating blogs from other online media; this is what makes them unique. Other than blogs, widgets- portable apps that allow both users and sites to have a hand in the content, have recently become a popular form of brand distribution. Facebook currently supports over 20000 such applications created mostly by 3rd parties – their popularity is soaring. Facebook has also recently incorporated one of the emerging trends in advertising and marketing – storytelling. The

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introduction of Timeline in place of The Wall adds a narrative where the Facebook brand plays a very dominant role – in this case, the narrative being the story of someone's life. Transitioning this promising advertising concept into content marketing has markedly been a notable step for the social media giant. Nielsen's latest Global Trust in Advertising (2011) report is one piece of evidence supporting the relevance of UGC. The findings of this report speak highly of the significance of information disseminated and collected through social media and the like. All sources of information that were from other users were judged by users to be more credible (over 50% reliance) rather than

“The introduction of Timeline in place of The Wall adds a narrative where the Facebook brand plays a very dominant role – in this case, the narrative being the story of someone's life”

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COVER STORY advertisements or newspapers whose ratings had taken a fall of over 25% since 2009. Meanwhile, a survey conducted by the author (98 responses) suggests that 7 out of every 10 people consider UGC as a trustworthy source of information when it comes to making purchase decisions. Approximately 53% of the respondents would choose not to make a purchase decision for electronic items without first having reviewed UGC. Similarly, the numbers are 49% for hotels and travel locations, 45% for cars and 44% for other consumer durables and so on. Evidently, over the past decade,

are original, not to mention cost effective, with savings of hundreds of dollars. The payback a company derives when it gets a campaign right: social engagement and publicity, increased browsing time on a website owing to greater levels of interactivity, increased ranking of the page,, not to mention a gradual and significant growth in customer loyalty. In addition, companies have access to a great deal of data capture and a more insightful understanding of the consumer. The dynamic nature of this content ensures that portals are up-to-date and in alignment with what is top-ofmind at that point amongst consumers. In effect – Company ABC that hit the nail on the head wins new consumers aside from

“The payback a company derives when it gets a campaign right: social engagement and publicity, increased browsing time on a website owing to greater levels of interactivity, increased ranking of the page, not to mention a gradual and significant growth in customer loyalty” arguments in favour of UGC to build on brand image have multiplied manifold, each one more rational and cogent than the next. Campaigns that have been fashioned about crowd sourced content

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engaging and retaining existing ones. The following question naturally arises – how does one get it right? Ensuring one doesn't get it wrong could be the first step towards attaining this utopia. Primarily, companies need to know their customers. Take for example, LEGO, the maker of a popular line of construction toys, based out of Denmark. For the grand opening of its new store in Ohio about a year ago, LEGO involved the people in the vicinity by providing them with LEGO blocks to build a 'super-block' in groups; each of these 'super-blocks' would then be assembled to construct a massive, attentiongrabbing R2D2, the adorable robot character from the Star Wars universe, that was positioned outside the store. In this case,


LEGO knew that its fans are particularly passionate about their product. A competitor may not have been able to conduct the same campaign with equal, let alone greater panache. If a company's consumers aren't passionate about its product, then a UGC campaign attempt directed solely around the product will fall flat. Rather, identifying the similarities or pain points of the consumer

together videos shot by young people from different parts of India. People were required to sing and send in their videos to the company and in turn find themselves featured on television – an attempt to make users the centre of the entire campaign. The initiative was one of the first of its kind in India where a traditional platform like television was able to encourage mass action and channel it towards a growing digital platform. Encouraging instances like these lay the foundation for change in the media and advertising ecosystem in India. Marketing is now more of a dialogue than unidirectional information sharing. Consumers are eager to be part of a brand. And as long as this eager consumer is free to share his idea on one of the multiple social media platforms – Indian marketers will definitely catch up. References: § http://marketingland.com/nielsen-consumer-trust-in-

group would help in unearthing possible domains that could theme fruitful campaigns. It is also absolutely essential to educate the potential users on what the task demands from them in exchange for what kind of reward. Weak and unattractive offerings like 10%-off coupons won't get anyone to lift a finger and help contribute towards a successful content venture. Again, rewards are all relative. Selfpromotion has sold Timeline but a '5 Day Holiday in the Bahamas' may not be reward enough for something else.

traditional-media-ads-fall-while-confidence-in-mobile-socialand-online-rise-9712 § http://www.ernestbarbaric.com/2012/01/what-is-content-

marketing/ § http://www.ernestbarbaric.com/2012/02/delusions-of-user-

generated-content/ § http://www.iab.net/media/file/2008_ugc_platform.pdf § http://blog.junta42.com/2011/04/the-biggest-mistake-in-user-

generated-content-learning-from-lego/ § http://www.socialmediaexaminer.com/ § http://www.digitalvisitor.com/latestnewsandresources/social-

media-blog/the-benefits-of-user-generated-content.html

UGC is being currently projected to be the future of all online media by American optimists. In India, however, the internet itself is being curtailed in an all too cautionary manner. Currently, the volume of content is the country's biggest strength and marketers do not particularly lack the resources required to begin to set the pace - we ought to try and catch up. In January 2012, Hero Motocorp jazzed up its 'Hum Mein Hain Hero' campaign by stitching

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TRENDZ Authors

Mahtaab Kajla is a PGDM student from IIM Kozhikode. He is a Computer Science graduate from NIT Jamshedpur and Network management associate from IIM Calcutta. He is an ardent gamer, enjoys photography, disc jockeying, choreography and outdoor sports.

Mangesh Patil is a PGDM student from IIM Kozhikode. He has graduated in EXTC Engineering. He enjoys dancing, movie making, listening to music and writing poetry.

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V FOR VIRAL How many times have you seen a funny ad and told your friends about it? When was the last time you saw an eyecatching poster and took a picture of it? Why do some jingles capture our mind space and ensure that we keep singing / humming them all day? These occurrences are not altogether uncommon and we barely ever give them a second thought. Today, technology has completely changed the face of marketing and helped in reaching millions of customers with a single click. Even though technology has opened up gates that provide access to so many people so easily, excessive advertising and promotion has led to bombarding unsuspecting consumers with hundreds of irrelevant ads. Naturally, marketers are trying to find innovative ways to communicate their brand message to relevant consumers, ensuring that they are able to identify with key wants and needs in the process.


A marketer tries to develop such a campaign with a message that might appeal to an individual who has a wide and established network. This is because there is then a high chance that such content will be spread on these networks by these individuals. Such individuals are assumed to have high social networking potential (SNP). They are supposed to be opinion leaders, whose ideas are highly valued by large number of people, and hence a primary target for marketers.

Some of the methods of Viral Marketing are: Search Engines and Blogs, Target Marketing Web Services, Social Media Interconnectivity, Television and Radio, Multiple forms of Print and Direct Marketing, SEO Web Development, Customer Participation and Polling services, Outbound/Inbound Call Center Services, VMS target marketing etc.

‘‘‘Viral Marketing', as the name suggests, is a type of promotion that makes use of social networks to increase awareness about the brand or the product/service through a multiplying viral effect which is similar to the spread of say contagious diseases or computer viruses.”

Importance to Business and Marketing „ „

„ „ „

Highly credible campaign as sources of information are peers People willingly share information and don't avoid it as in the case of other forms of advertising Cost is low as the primary promotion tool is word-of-mouth Extensive reach due to rapid spread through inter-related networks Highly efficient with the added advantage of continual promotion adjustments

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The Dark Knight's Viral Marketing Gets Very Real - Cakes, Cell Phones et al! Indian Scenario In India, marketing as a function has developed based on practices in western countries. Still, Viral Marketing is not very popular. In the past decade, there were few promotional campaigns, some of them offline, that succeeded on a level that could be called Viral. Most of us remember the famous Chlormint advertisement where the average Indian keeps asking 'Hum Chlormint Kyun Khaate Hai?' only to then receive a bashing. This question became so popular in itself that teenagers started using modified versions of it as a funny one liner. It would be a crime not to mention that the song 'Why This Kolaveri Di?' created ripples across India – so much so, that it achieved more than 5 million views in a span of 8 days.

Conclusion Viral marketing is one of the cheapest forms of promotion but ironically has a long way to go in India. One major reason is the difference in technological reach of the consumers in the western world and India. Western countries are already very exposed to such campaigns and

they have been quite successful so far. Similar promotions are evolving slowly here, but marketers still lack desirable levels of innovation and consumers lack acceptance. Companies and brands need to work toward an optimum use of the internet to achieve a preferred viral effect, simply replicating the western ad campaigns won't help. And it is imperative that Indian marketers consider culture before designing any campaign. If they do, things will fall into place. If they don't, they can rest assured that the campaign would turn out to be a complete and utter dud. References: „ http://en.wikipedia.org/wiki/Viral_marketing „ http://www.marketingsherpa.com/vas2006/6.html „ http://www.marketingexperiments.com/improving-website-

conversion/viral-video-clips-targeted-traffic.html „ http://www.prospectmx.com/15-of-the-best-viral-marketing-

campaigns/ „ http://socialmediaguerilla.com/social-media-marketing/how-to-

turn-guerilla-marketing-viral-the-viral-effect/ „ http://cambridgecreditcounseling.wordpress.com/category/mar

keting/ „ http://www.firstshowing.net/2007/the-dark-knights-viral-

marketing-gets-very-real-cakes-cell-phones-and-all/ „ http://www.emarketing-egypt.com/ „ http://watermarked.cutcaster.com/

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Some mindboggling examples:

Subservient Chicken

Sheep Art

Example

What it was § A video which showcased art created by attaching LEDs on large flock of sheep which was carefully handled by a few herdsmen. § It has attracted more than 17 million views. Refer to the following link to watch the video: http://www.youtube.com/watch ?v=D2FX9rviEhw § One of the first viral video campaigns that involved millions of internet users. § Promotional video of Burger King’s Chicken Tender Crisp Sandwich.

§ The idea itself was so cleverly executed that it was able to spread across the internet on its own without any kind of promotion. § In essence, a video that you would love to share with your friends & family immediately after watching it.

§ No other company had created an online interactive campaign of this kind on web 2.0 back in 2004. § A chicken the size of a man heeding to your commands instantaneously? Intriguing, is an understatement.

Refer to the following link to watch the video: http://www.youtube.com/watch ?v=hp7iDpvROWQ § Trend by Hollywood studios to use viral marketing techniques to generate a pre-launch buzz.

The Dark Knight

Why it went viral

§ Usually done by creating dedicated websites and then using teasers about what the movie will contain. § The Dark Knight’s team went a step further and created one of the most realistic campaigns ever by building a dedicated website and guerilla campaigns across the cities - real recruitment into the joker’s army through cell phones. A formidable blend of Viral and Guerilla Marketing.

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§ Everyone was doing the same thing – But The Dark Knight’s team was different. They achieved similar results at a fraction of this cost with viral marketing. § Around 2008, it was impossible for an internet user to not come across an update related to The Dark Knight. § Popularized mostly through wordof-mouth, the movie was one of the biggest and most successful blockbusters in history.


GYAAN Author

LET THEM CHOOSE WHAT YOU WANT TO SELL A newspaper representative recently came to our campus and distributed exclusive offers to college students. These were – 6-month subscriptions for

Birma Ram

Rs. 149, 9-month subscriptions for Rs. 199 and 12-month subscriptions for Rs. 299. It was a no brainer to choose the second option and more

is a student of Indian Institute of Management, Ranchi. Marketing & Strategy are his area of expertise. He is a Civil Engineer who also shares interest in literature contribution by writing research papers and articles.

than 95% students opted for the 9-month subscription. This was no coincidence or a simple result of consumer's choice. In fact, the company wanted them to buy 9-month subscriptions even though 12-month subscriptions could have seemingly brought in more revenues. With a slight manipulation in pricing of the product/service, marketers can make the consumers choose what they want to sell. Why do it? Many times, consumers look for choices to zero in on their possible selection and comparative choicemaking behaviour of customers is what makes this manipulative marketing tactic work so well.

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These strategies of making one choice seem less lucrative and raising consumer preferences for another product (with a small difference in quantitative/qualitative offering) are known as Decoy Strategies in the marketing world. The concept of relativity and comparison used by the consumers for their choice-making process is subtly targeted through the NeuroMarketing discipline. Mostly, consumers find it difficult to choose from equally attractive choices and that's where decoy

“The concept of relativity and comparison used by the consumers for their choicemaking process is subtly targeted through the Neuro-Marketing discipline.� strategy plays its role by providing the A word of caution at this point is that this consumer with a small impetus for selecting strategy should not be used in highly what the company would prefer to sell. competitive scenario where competitors may Dan Ariely, in 'Predictably irrational', has take advantage of such differential pricing. discussed and proven this concept well. Also, products like mobile phones, A better understanding of the potential of automobiles, electronic gadgets, etc. which decoy strategies and the purview under have many specifications and features which they can be adopted in different associated with them may not be suitable for industries may come by considering more such pricing strategies. examples. This simple marketing practice A decoy strategy can be used to increase comes under pricing of the marketing mix. sales of one product by introducing another

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GYAAN

priced higher or lower than the product

This may not be true for all consumers but such

under focus. The rationale is that the

an adjustment will certainly produce desirable

customer should be able to validate the

results for marketers.

value advantage by plainly pitting the pricing of the involved products against

It is not just that one can mould a consumer's

each other.

preference, but also that this neurological

Consider a Vodafone GPRS offer which

insight can bring large scale industrial changes

provides a 2GB data usage pack @ Rs. 95.

if implementation is carried out correctly. For

If an additional option of 4GB is introduced

instance, the film industry is moving towards a

@ Rs. 120, it will certainly encourage users

3D experience. If major players intend to

to go for the latter choice though they may

hasten the transition, what they have to do is

not be able to exhaust even 2GB in one

simply increase rates for the 2D screening

month (those who use GPRS on their

such that it becomes 'relatively' economical to

phones know it only too well). If a 1GB data

go for the 3D screening as movie-goers will

pack at Rs.65 is introduced, then it is likely

find more value in it Once the foundation is laid,

that users will find more value in the 2GB

rates could be adjusted as people will get

pack at Rs. 95 instead of the 1GB pack.

familiar with the new technology and would not

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find it unreasonable to pay extra. Banks and other financial institutions can also use strategies which may bring slight differentiation in package pricing and thereby sell their most profitable services. For instance, online banking is something banks want to promote apart from credit card schemes; but both are not accepted well by Indian consumers due to discomfort with technology and lack of a solid value proposition for the consumers. To deal with this, companies can provide schemes where internet banking is coupled with regular banking facilities and the minimum balance required is lower than that for regular banking. For instance, HDFC Bank does this, whereby they open bulk accounts for

products/services which do not cost the company extra if they merely offer it to consumers – costs should be such that they are incurred only if the promoted product/service is opted for. If applied to perishable products or products which require the maintenance of an inventory, then the overpriced or underpriced products may cause heavy losses in sales; not to mention inventory holding costs. Caution should be taken as competitors may take advantage of the need-gap that is created for the product at a price that falls between the two prices if the higher price is too high and sufficient demand is prevalent. The whole idea revolves around making the consumers think rationally, after all.

new recruits in an organisation with zero balance facility along with internet banking. The point to be focused on is the difference in the price which needs to be significant to showcase a higher value attached to the package the bank wants to promote. Also, credit cards which the bank wants to sell more of need to be offered alongside similar

References: „ http://themarketingspot.com/2009/08/three-predictably-irrational-

pricing-strategies-that-get-sale.html „ http://www.gsb.stanford.edu/community/bmag/sbsm0008/facu

lty_research_mktg.html „ http://www.neurosciencemarketing.com/blog/articles/decoy-

marketing.htm „ http://moneyland.time.com/2010/09/16/how-youre-

manipulated-into-buying-stuff-you-dont-want-and-payingmore-than-you-should/

cards which give a lower value proposition to consumers at a higher cost. The division should be subtle enough to engage the consumers in their decison-making process and give them the feeling of getting a good deal compared to what they were previously going for. This whole concept is applicable to

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GYAAN Author

ASHUTOSH

POINT OF PURCHASE (PoP) TRIGGERS IN RETAIL Often marketers have jostled over getting hold of the mind share of their prospective customers

has chosen to major in the m a r ke t i n g d o m a i n . H e graduated in engineering from Cochin University and joined FMS in the same year. He completed his summer internship with Lenovo in Bangalore in a marketing profile.

through advertisements - by way of television commercials (TVCs), print advertisements and Out of Home (OOH) Digital Media, and have still struggled to make an impact. This is predominantly true for categories of low involvement where the competition space is cluttered with all brands offering similar propositions to consumers. This has forced companies to consider various sales promotion techniques which would complement the noise they make through advertisements & OOH for their brands. These techniques have succeeded in pulling the triggers at points of purchase (PoP). What they have still failed to do, however, is attain an optimum result. Since it is not mere noise that helps draw in consumers, this should have been seemingly obvious. It isn't. How else would one explain the failure of brands to come up with PoPtriggers that actually work?

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What makes PoP trigger-selection a

come to the second case. Is only packaging-

carefully thought-out process:

based PoP advertising enough for sales? No,

Importance of PoP triggers in retail

because the product itself might not command

Two key aspects have primarily been

enough shelf space for the packaging to make

lacking in the generic PoP trigger formula

a PoP impact. While there is hardly any

that brands tend to work out for themselves

alternative to adequate shelf space, an

- resonance between PoP triggers and brand image and the suitable vehicle for such triggers. Let us take the first case. Would an environment of loud, blaring

appropriate PoP display - external to the shelf - might just as well direct the shoppers to your product even if it has not been quite visible on the shelf itself in the first place. Such cues induce shoppers to look for your brand, and

music aid in the sales of Sufi song albums at

voilà! the first level of engagement has

a store? The answer is obvious. Let us

already been reached.

“Two key aspects have primarily been lacking in the generic PoP trigger formula that brands tend to work out for themselves - resonance between PoP triggers and brand image and the suitable vehicle for such triggers.”

Brand Resonance with PoP Triggers: Manifestation of Brand Elements Brand elements must manifest themselves in the PoP triggers to create a resonance with the brand image and the trigger used. Nestle Maggi would use yellow-coloured displays and would avoid red and green colours (associated with Foodles, for example). A “Just 2 Minutes” slogan on a signboard would drive customers towards Maggi and create a PoP bias against the rival brands

21 | Buzz - The Markazine | AUGUST 2012


GYAAN PoP & Refining Impulse Purchases:

convince a willing customer, for want of

Choice of a Vehicle

change in currency or out of impulse, to pick up

For long, confectionary has been stacked

simply any other chewing-gum?

at Point of Sale (PoS) counters, hoping to

small 'Boomer Man'-shaped toy, stuffed with

trigger an impulse buy. Low ticket items like

Boomer chewing-gum strips enhance chances

these have to back on TVCs featuring

of a favourable response? It would, wouldn't it?

brand elements like a mascot (Boomer

Will just another transparent jar work better?

Man, for example) to drive recall and

Obviously, the answer is negative. The

recognition.

conclusion: PoP vehicles that incorporate

But is a Boomer more likely to get a more

brand elements better are more likely to result

favourable response than an Orbit or say

in a sale.

Would a

“PoP triggers are as much about services as they are about products and their associated displays.� Polo? While Polo has the advantage of a

PoP as a service:

unique shape which naturally scores on

Now let's scrutinize the use of PoP triggers in

recall and recognition, Boomer - a flat

an apparel store. Almost every apparel store is

chewing-gum - does not enjoy the same

equipped with trial rooms. It is often said that

edge and is likely to lose out on this

once a trial is under process, it means that

account. So, advertisements shout 'Boom

seventy percent of the sale is done. Then why

Boom Boomer' in the attempt to drive up

do retailers complain of shoppers who ensure

recall. But at the point of purchase, how

they get photographed in trial garments and

can Boomer ensure that it is the 'chosen

then leave without actually purchasing

one', in the midst of a generally cluttered

anything? What constitutes an appropriate

display? That too, in the presence of

PoP trigger here? A trial room is a generic PoP

multiple unwarranted variants - ready to

with little resonance with individual brands.

confuse customers and drive them away or

This is true especially in a multi-brand retail

22 | Buzz - The Markazine | AUGUST 2012


store that stacks various brands - let us assume for the sake of simplicity - from the

References:

same house of brands. Will brand posters

http://marketingteacher.com/lesson-store/lesson-consumerbehavior-shopping-habits.html

http://www.tnsglobal.com/_assets/files/TNS_Global_Market _Research_Case_Study_Boards_Category_layout.pdf

http://www.shoppercentric.com/uploads/report/Shopper%20 Perspective%20Report03%2%20Front%20of%20Store.pdf7192.pdf

featuring attractive models inside the trial rooms help in influencing the mood of the customers?

It is likely to work. Will an

attractive salesperson attired in some of those clothes with visible tags act as a cue? It would work better, more so if they actively appreciate how customers look in the garments that they try on. It might be truer for lone shoppers who do not know whom to approach when they leave the trial room in the attire they are considering for purchase.

Conclusion: PoP triggers are as much about services as they are about products and their associated displays.Therefore, it is not merely sufficient to opt for any PoP trigger in retail shops. Due consideration must be given to the specifics of each case – and especially to the appropriateness of the PoP vehicle in order to derive a desired response and resonance of the trigger employed with the brand image and brand elements.

23 | Buzz - The Markazine | AUGUST 2012


EXPERT SPEAK Buzz: Please tell us about your view on the current textile & clothing industry worldwide. S K Gupta: Manufacturing has rapidly moved to the Asian Region due to its cost competitive advantage. Consumption, still dominant in the West has begun to stagnate marginally. Asia has, however, been exhibiting a much higher double digit growth showing signs of a shift in action in the years to come. Strong organised retailing in the developed world will keep supporting exports from the Asian Region. Domestic industry in Asia will continue to reap the benefit of the dual advantage of growing export business on the back of inherent cost competitiveness as well as support from the

S K Gupta

growing domestic consumption. is Group CEO, Raymond UCO. He has held senior positions in the textile

division

of

large

Buzz: What is your view on competition faced by the Indian textile industry?

conglomerates, namely Reliance, Grasim and Bombay Dyeing. He has handled a variety of textile products ranging from suiting, shirtings, sarees, dress materials, woollens, home textiles and now denims.

S K Gupta: It has always been there in varied degrees in different segments and it's becoming more intense with more players entering the fray. Industry has to be globally competitive in manufacturing, supply chain management, service parameters, branding, marketing and retailing. It has to reach out to the world.

He recently took time out to discuss his views on the textile industry with Buzz.

Indian industry is alive to the challenges and is actively engaged in achieving world class scale in all these areas both organically as well as through strategic alliances with world leaders.

24 | Buzz - The Markazine | AUGUST 2012


home and consumers graduating to higher Buzz: What trends can be sighted? How do

fashion points has kept the industry healthy.

you see growth of this sector? Buzz: What could be possible movements in S K Gupta: This sector has a bright future

the industry once this enemy is nullified to

and offers great opportunity in the global

considerable level?

arena driven by globalization advantages like easy availability of raw materials, large

S K Gupta: Much higher growth and capacity

spinning and weaving capacities,

expansions.

burgeoning garment industry, abundance of trained human resources, entrepreneurial skills and to an extent, favourable government policies for this labor intensive industry.

Buzz: A lot of attention is being paid to eco friendly products and production. Is Raymond Buzz: Recession has been a buzz word for

or the Indian textile industry conforming to this

industry all across the globe for over a year.

trend?

Some people however opine that it is retrenching slowly. What is your take on

S K Gupta: Yes, not only are all our production

this?

facilities environment friendly and compliant but more eco-friendly product collections are

S K Gupta: This is a temporary

being launched under all categories of fabric

phenomenon and has had no serious

and garment businesses.

impact on the Indian textiles industry. In fact some businesses are now moving to India

Buzz: What is it that you enjoy most about

from China which is slowly becoming less

being in this line of business?

competitive with increasing wages and infrastructure costs. Growing demand at

S K Gupta: I believe it's my ability to add

25 | Buzz - The Markazine | AUGUST 2012


EXPERT SPEAK significant value in all business streams

S K Gupta: Unpredictable policies on cotton

with long and enriching experience of

and yarn export quotas, power availability,

handling varied textile categories and

quality of transmission and higher cost vis-a-

functions in major textile conglomerates.

vis other competing countries, unfriendly labor laws, ever fluctuating export incentives and

Buzz: What kind of opportunities do you

poor infrastructure.

see that is growing in the textile industry of India?

Buzz: Please tell us about the selection trends that your present day consumers follow

S K Gupta: In all the segments ranging from fibre to retailing across the entire

S K Gupta: In branded fabric and apparel

value chain.

business – Brand experience, retail/shopping environment, quality, trust and service.

Buzz: Europe and the US have very high

In B to B business – quality consistency, on

demand for high end textiles. Will this

time delivery and product development,

situation continue in the future? Where do

reliability and price competitiveness as well as

you see the high end textile industry in the

ability to handle small size orders.

near future? Buzz: According to you, how has the Indian S K Gupta: West's demand straddles from

consumer matured over the years and what

low to high price points ranging from basics

changes the textile industry has undergone to

to high couture apparels. Asia will be the

keep up with the shifting trends?

region which would be seen moving up in the fashion hierarchy changing paradigms

S K Gupta: With exposure to world fashion

in the years to come, though dominance of

through electronic media, availability of many

US and Europe will continue for quite

international brands coupled with entry of

sometime.

home-grown high end brands, consumers have become more discerning. This has been

Buzz: According to you, what are those

fuelled by a high percentage of young

barriers which are constantly being raised

population growing at faster speed and

in the purview of textile and garment

change in general life-style coupled with

industry?

higher disposable income.

26 | Buzz - The Markazine | AUGUST 2012


Buzz: What conditions are you experiencing

other supporting services generating price

that are most influencing your business and

premiums via-a-vis competition.

your customers' tastes? Buzz: What next for the Indian Textile and S K Gupta: Fast and unpredictable changes in

Apparel Industry?

fashion and demand patterns requiring quicker responses and operational flexibility including

S K Gupta: To be the fashion capital of Asia,

product innovation at a much faster pace.

compete in all segments across the value chain and aim at quantum growth. It is poised to grow from the current $54 bn to $144 bn by 2021 as forecasted by the leading consultant in the textile field – Technopak Services.

Buzz: Within such a competitive global textile market, how does Raymond remain competitive in terms of technology and products? S K Gupta: We add more value by remaining ahead in terms of product innovations, quality consistency, great brand and shopping experience through more than 700 dedicated exclusive stores and more than 15000 leading MBOs all across India and neighbouring countries. We also provide innovative products of world class quality in B to B businesses coupled with

27 | Buzz - The Markazine | AUGUST 2012


VANTAGE POINT

INTERN INSIGHT ON RURAL MARKETING

DIARIES FROM THE LAND OF KINGDOMS Roopali Saxena from NMIMS, Mumbai shares her experience of working in villages in Rajasthan Team Buzz met up with Roopali, a 2nd year MBA core student and she shared her experience at her summer internship in a Rural Marketing role, in and around villages of Jaipur and Ajmer at HCCB (Hindustan Coca Cola Beverages). Her role was to improve numeric distribution for the sale of Coca Cola, an impulse driven product. “I received a lot of autonomy with respect to planning my field visits, strategising about initiatives and was supported by people at different positions in the company throughout” she says.

She worked with a hub and spoke model in the villages where the hub was a distributor with many villages under him and could have a mini distributor as a spoke again with villages under him. “It is difficult to map shops. Shops are seasonal. Every shop is not necessarily covered by the sales representative”, she adds. Talking about some of the difficulties faced by her, Roopali says, “Getting accustomed to the

28 | Buzz - The Markazine | august 2012


TALES FROM THE SEVEN SISTERS

rustic Rajasthani dialect was a difficulty. But people were helpful and would translate to and fro from Hindi when asked to do so. Another area was gaining people's trust. The shopkeepers would find it difficult to trust a newbie, from some unknown land initially. It took a lot of convincing to get my point across”, she explains. We ask her about some of the important lessons she learnt, and she pauses thoughtfully and narrates. Lesson One: In a rural set up, sales is pivoted around building relationships. It is more about the bond you share with your customer than the discount you would offer to him.

Arun Shankar from NMIMS, Mumbai shares his life changing experience of working in the volatile markets of the North East Arun Shankar, a 2nd year MBA Marketing student, is a budding marketer who had a rural assignment with Perfetti Van Melle in the North East region, namely Assam, Meghalaya and Tripura. His role was to improve the rural distribution and sales of Perfetti's products and to identify and eliminate key bottlenecks in the process.

Lesson Two: Never accept anything on face value. Prod. Look beyond the obvious and you might unravel trade secrets on your own. For example: She came across a sparsely populated region and was astonished to find that the sales there were sky rocketing. It was after asking around that she realised that the area had a famous temple which was frequented by villagers from neighbouring villages also. The puzzle then made perfect sense. Lesson Three: Learning how to handle conflicting opinions and interests is important. Sometimes she would take a decision based on her understanding of the situation and later realise that there were a lot of factors which she was unaware of. It took a whole lot of convincing and extra effort to pull her out of the mess.

Arun says, “The major difference in the distribution model of Perfetti when compared to the urban setting is the presence of intermediate levels of the stockist and the sub-stockist between the distributor and the wholesaler. This is done to ensure a smoother supply of their products during times of shortages”.

29 | Buzz - The Markazine | august


VANTAGE POINT

When asked about the nature of demand for Perfetti's products in the region, he explains - “People here consume huge amounts of Paan, confectionaries are therefore used as something that goes well with it. The North East is one of Perfetti's most important markets.”

For Arun, it was a life experience, he says, “The learning a rural assignment has to offer is immense; the market is not so well developed and is like an open laboratory for a marketing enthusiast. One gets to experiment and try out unconventional methods.” He also recalls the hardships that a rural setting has to offer, “The North East has serious electricity and transportation issues and most of the time all I had was bottles of Coca Cola”. But at the same time, Arun also stresses that it is hugely important for one to understand this kind of market, since consumer dynamics are very different and there is serious price sensitivity as well as demand for quality.

30 | Buzz - The Markazine | august 2012

All in all these experiences increase the maturity of students who have limited exposure to rural India. His advice is to take up an assignment if one gets the choice and in the long run it will be a great experience and irreplaceable learning.


tidbits The Latest in Business and Marketing across the World

Source: ยงhttp://www.marketingmagazine.co.uk ยงhttp://online.wsj.com ยงhttp://pitchonnet.com/blog ยงhttp://www.mobilemarketingwatch.com ยงhttp://adage.com/article

Google to acquire Frommer's travel guidebooks Google Inc. is buying the Frommer's line of travel guidebooks, the latest move to amass a trove of publishing content that could strengthen the largest Internet search company's push to become a major online travel broker. The sale by John Wiley and Sons Inc. comes nearly a year after Google's $151 million purchase of Zagat Survey, which offers reviews of restaurants, hotels and nightclubs in cities around the world. Trustworthy reviews from Frommer's could give Web surfers more reason to visit Google, which wants to generate more advertising revenue from the growing online travel industry. Tata Motors to sell Nano merchandise on Ebay In an effort to popularise its Nano brand, Tata Motors has entered into collaboration with Ebay to sell various merchandise, including scale model, watches and pen drives, with the small car's badge. "Ebay has a good reach in metros, Tier I and II cities and this collaboration will help us reach out to Nano fans, spread across the country," Tata Motors Head (Nano Product Group) Delna Avari said in a statement. Claiming that the Nano was one of the first cars in India to be booked online, the company said with this latest move, online marketing initiatives will reach the next level. Coca-Cola to relaunch RimZim of '80s Coca-Cola plans to re-launch RimZim, once a popular Masala Cola brand which it acquired from Ramesh Chuahan in the 1990s. Coca-Cola plans to revive the RimZim brand in parts of north India and will give it a contemporary packaging, signaling the rising element of localization in the portfolios of the two big cola companies. RimZim's is being re-launched in keeping with a brand study conducted by Coca-Cola that indicated a strong recall of the brand among consumers, a company official said. The Masala Soda category is estimated to be around Rs 500 Crore with both PepsiCo and Coca-Cola being the two big organized players in the space. Reuters may buy majority stake in NewsWire18 Thomson Reuters Corp. is in talks to buy a majority stake in NewsWire18 Pvt. Ltd in a transaction that values the latter at about Rs. 150 Crore, according to three people close to the development.

31 | Buzz - The Markazine | August 2012


NewsWire18 provides financial news and market data, offering a range of products including NewsFlash, a customised version of the group's flagship news service EquityWire. This would be Reuters' third acquisition in India after acquiring RedEgg Solutions and Mumbaibased tax software maker Fast Facts Computer Systems in April and is seen as a part of their strategy of increasing its presence in India. Domino's Revamping Stores, Drops 'Pizza' From Logo In a move that signals changing consumer behavior, Domino's is revamping its logo and its stores to appeal more to the increasing number of consumers picking up their pizzas. In the U.S., when the text does still appear in the logo, the "Domino's Pizza" will be replaced with "Domino's" only. This branding makeover will help the company grab the kind of singleglance recognition that McDonald's enjoys with its golden arches or Nike has with its swoosh. Facebook Moves Away From Dumb Broadcasting Tool to Marketing Database Before this update on Facebook, country and language were the only factors available to brands for targeting their posts; and while this was essential for global marketers needing to segment by local market, they were of no use at a local market level. Now brands can target their posts at different segments of their fan base based on a huge range of factors. It's not just age, sex and location – this goes as far as relationship status, education, college and even workplace. It transforms a brand's fan page from a dumb broadcast tool into a hyper accurate and always up-to-date marketing database, allowing them to address different segments of their fan base with customized content. P&G invests in Mothers and Cleanliness FMCG giant Procter & Gamble has announced it will donate an extra $25m (£16m) raised via portions of its product sales to support youth sport around the world as the next step in its ten year corporate partnership with the International Olympics Committee (IOC). The move by the global shampoo-to-nappies firm is

32 | Buzz - The Markazine | August 2012

part of its ongoing “Thank you Mom” campaign activity. It says the money will be used to build on $6m (£3.8m) investment already made in establishing and sustaining youth sport activities internationally. Procter & Gamble is planning to host a second Capital Clean Up campaign after the Olympic Games. Earlier this year, P&G partnered with the Mayor of London to run the Capital Clean Up events. P&G's household brands such as Ariel, Flash and Febreze hosted branded events across the city to pick up litter and remove graffiti. New York Times Names BBC Director Mark Thompson Its New CEO The New York Times Co. has named Mark Thompson president and CEO, filling a vacancy created when Janet Robinson left abruptly last December. Mr. Thompson, who will assume his post in November, has been Director-General of the British Broadcasting Corp. since 2004.While Thompson is credited with helping to transform the BBC into a more digitally focused media service. Times Co. is counting on Thompson to reignite sales growth and accelerate a shift to the internet. 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.


THE MARKETING CELL Narsee Monjee Institute of Management Studies, V. L. Mehta Road, Vile Parle (W), Mumbai – 400056

Contact Us Salil Pawar President +91-9892118027 salilpawar1@gmail.com

Ragini Kate Knowledge Head +91-9833395880 raginikate@gmail.com Mail njm@nmims.org

Buzz - The Markazine, August 2012 Behind The Scenes

Ragini Kate Editor Designed By Shreyansh Batia and Salil Pawar Junior Design Team Akansh Gupta Ankita Bapna Ashwini Aditya Ram Harneet Ahuja Jaideep Banerjee Ritesh Baid

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Buzz - The Markazine, August 2012